| | | Some thoughts on this release...
While it lacked the sizzle we all crave, it is another brick in the wall of evidence. I thank Discern for going through the PEA and looking up the old recovery number: 84.6%. At 90%, that is a statistically significant improvement to our project. Every number is multiplied so an increase in 1 number has a significant increase across the board. This increased recovery may even impact our cut off grade and our total mineable resource to some degree so it is more than just a few points gained.
Total recovery so far has gone from 75% to 79.8% and JJ has not finished tweaking the flotation and we have not seen how much improvement he has done on purification. However, we already have 5% more and on 50k tons per year at $20k per ton, this is $50M increase in earnings!! Giddy up JJ!
Oh, the East and West pipe yield the same result. Another myth debunked again!
The NR also discussed the upcoming work with timelines attached. This work will cost money and we will need to raise that money. It seems that ZEN is comfortable giving timelines here so reading between the lines, they already are in discussions to raise that money. Maybe we will get more grants, maybe a strategic investment or a good old PP. This deposit is so rich, we could double our float and still make a killing. So if the company has to issue 10M shares at .80 to get this moving, then get her done. However, that is a worst case scenario IMO and I think you would see the share price move up significantly if we were properly financed. I do think that ZEN will get money with minimal dilution though since AE has been so anal about dilution.
Am I surprised the market yawned today, no. Am I happy with this release, yes I am.
Wake me up at $20 as my old friend Richard used to say!
Glorieux |
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