RE: RNS22 Jan 2020 07:45
The 3 most important points from my perspective and many of you have already touched on them.
1. “The Board sees limited additional incremental value from conducting further indicated resource delineation drilling at this time, with the project's pre-existing resource estimate sufficient for economic modelling and mine development decision-making.” This tells us we have reached the point where no further monies will be spent on proving up the asset. IMO the “silent hand” has seen enough and is busy with a DD and they have enough data to make a decision. Some of you have alluded to it as “ready for sale “ now. I agree.
2. “As announced previously, Wardell Armstrong International ("WAI") made a series of recommendations for a second phase of metallurgical testwork, including amendments to the milling and froth flotation procedure, which could achieve minor but potentially financially significant improvements to concentrate grades. In particular, a small reduction in the amount of zinc reporting to lead concentrate could result in stronger lead concentrate grades and zinc concentrate recoveries”. This tells me the buyer has seen enough from the preliminary Met results and wants to see if WA can get an improvement in grades and recoveries which will help with their purchasing of asset business case.
3. “A geotechnical study is currently being completed, to a pre-feasibility study level, “ This tells me EUZ will not be doing a PFS as it will be the new owners responsibility.
Overall a very informative RNS which we can learn a lot from. I agree the end game is already on us and Goldquest Spain will be sold during the 1st quarter of this year. IMO DYOR GLA.
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