It will be interesting to see the breakdown of how the $3.5M will be spent. How much really will go into the ground? RMR needs to do enough drilling at Keel to show that they have the potential to make the resource bigger but also up the grade quite a bit. Most underground zinc mines have grades in excess of 10% combined Pb+Zn. The approach does seem prudent as they have raised enough money to do a reasonable drill program to see if they can lift the grade. If the grade improves significantly then a full PFS will be warranted. If they just get more of the same grade mineralisation then Keel will probably not be economic and then a full PFS would not get done. Take the first step and see where the resource end sup in terms of grade and size. A lot then hangs on this first drill program.
RMR Price at posting:
5.5¢ Sentiment: None Disclosure: Not Held
