That looks ok, but its capped at twice OKU.
OKU has a real shot at 5-10m ounces of gold imo. Why? Just look at the scale, the geology, team, area, shareholders, miners along strike and the results so far. Obvious, large scale mine coming here- its a big gold system. Black-rock just sucked up nearly 15% (20% above market price today) of the company and Resolute also joined in.
They already have 5 open pits at surface (good recovery with this) and a complete current strike length of 12 km (just started). These guys could mine the open pits and still be mining bedrock when we are all pushing up daisy's. My own back of the envelope figures tells me this is probably already a million ounces without deep holes. There is substantial gold for km in several directions. The company is surrounded by major gold mines and resolute are up the road. I can see two buyers for this down the track..1-resolute and 2- B2Gold. B2Gold paid about $500m for the mine with another $500m needed for development and that was 5.3m ounces deposit with exploration upside. Makes OKU look positively cheap.
The company has plenty of cash and backers. The current $55m market cap and $12m cash suggests the enterprise value of this is tiny for where it is (approx $40m only)
No surprise that RSG and Black-rock joined in down here. This is cheap, we will be looking back towards the end of this year and shaking our heads imo. Please dyor and we are due some more drill results.
OKU Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
