Bought a parcel at 27c but flipped it on this announcement as I suspect mining dilution (or conversely high mining costs) could potentially be a long term issue for this deposit. Resource size, grade, geometry, CapEx and metallurgy all look OK but mining narrow widths can make it very difficult unless you have very high grade.
MC fundamentally still pretty cheap given the resource size though, so probably not too much downside danger. Think best for me is to wait for another pull back or more information on FS, shape of funding arrangements or better drill results etc
Market has punished a few developers on feasibility studies of late, which is very depressing. WAF got hit on their first study and CMM just got smashed on what seemed like a pretty robust proposal to me. Market works in mysterious ways. GCY gets supported despite IMO having obvious and major potential pitfalls in its mine plan. Esh
EGA Price at posting:
29.5¢ Sentiment: None Disclosure: Not Held
