The grade is ok to good, but the thickness indicates there is a lot of gold here with some high grade zones which might be worth developing along.. thickness can mean good underground stopes, but will leave to mining engineers / geologists to perform those contortions from this data. My takeaway is that this is building into a decent scale deposit, which hopefully means they can firm up 500k to 1m oz that a nearby miner can see 50k oz per annum production from to feed their mills / blend with their ore to improve met recoveries, smooth out production, etc and buy the company for $75 to $125m.
This is a great case study in a good operational story, with a poor capital markets execution which is a board issue not an MD one but probably all due to close friendships around BBQs in West Perth than a national hunt for the right fundraising partner. If they'd not used a Patos in Perth, we probably wouldn't be constantly seeing a wall of sellers looking to rotate into the 'latest and greatest' deal (Patos just doesn't have the retail book depth on the east coast), and we'd be well over 10c.. my view is patience on this stock as inevitably those sellers will dry up and the results will keep building up against the dam wall.
