Anytime you go underground it can be challenging, but by going wide and then using ore sorting to solve the dilution problem makes things a lot simpler. When you are narrow vein mining you don't have much room to move and bad miners can cause a lot of dilution. With what EGA is planning on doing they have a lot more leeway for mistakes (as well as move ore).
Rothsay has been mined successfully in the not too distant past so it is not like they don't have a pretty good idea of what to expect down there.
Right now with the gold price looking good I don't think the banks are too concerned with a project like Rothsay. It is not like there is not a huge amount of cash sloshing around, people just don't know where to invest it. A gold mine with an 18 month payback is a pretty good place to put your money if you are a bank.
The biggest risk is incompetent management. This will ruin even the best mine. The positive here is Marc and the team are mining guys, not promoters or lawyers. They are not too good at selling the potential of Rothsay, but they seem to know what they are doing on the ground. The consequence of this is the SP languish where it is now, but long term we get a working mine.
EGA Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
