Hi Hugh,
That's a good post but I'm not sure I can agree with your conclusions for the following reasons. You seem to be assuming that HDG want to focus only on the area near the old mine-site and establish proven reserves. We don't know that's correct but if so, it might not be to MLSM's advantage.
Firstly, there are currently no proven reserves on the property. This is clearly stated in the appraisal done by Southampton and Associates for MLSM and posted on their web site.
Secondly, all drilling to date (so far as I know) has attempted to establish proven reserves but so far failed. Of four holes reported this summer, only one was successful but returned mediocre results of stringer chalcopyrite over an unstated true width. To be fair, the other holes encountered drilling difficulties but the results were zip. While we might expect a few more good holes in this area, I doubt they'll create the market MLSM needs.
Thirdly, drilling the outer anomalies appears the best bet to produce dramatic new results. If they can discover base metals in these areas, it's a new day for MLSM and the property's potential is immediately enhanced. However, if they fail, the curtain starts to close.
I don't think they have any choice but to drill these new areas. If they didn't, I wouldn't give two hoots for their chances. Naturally this is offered FWIW and IMHO.
Regards,
Bob |
