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28.5¢ egan street resources limited

Very deep. If you look at the hits the strike gets wider the...

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Davisite

10,813 Posts.

863

18/02/19

22:04

Post #: 37477293
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Originally posted by wombat777 ↑

Spent a bit of time looking at discovery rates. My annotations (in blue) are on a slide from the RSS Presentation.

Their peak discovery was between May 2017 and July 2018 ( 14 months ) and they added 139,000 Ozs.

Their production ounces for life of mine currently make up approximately 70% of the ounces in the resource.

If they can add 100,000 ounces per annum to the resource then they should be able to add 70,000 ounces of production ( or 1 year of production, noting first 2 years of production planned at 64,000 ounces ). However if they grow their discovery rate at 10% per annum, they should be able to gradually grow their production ounces per annum ( which is what we want ideally want for sustained growth in P/E ).

View attachment 1450227

From the investor presentation there seems to be plenty of scope for growth of the resource along strike but I wonder how deep this ore body can go?

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Very deep. If you look at the hits the strike gets wider the deeper it goes. The history of these sort of strikes in WA is that they can go down a long way (kms). I would really love to see EGA sink a very deep drill hole just to see what they find.

EGA Price at posting: 25.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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