It’s going to be interesting to see what Great Panther Silver (GPR.to) (GPL) comes out with as a news release Monday morning on its Coricancha PEA, filed on SEDAR last night. Will they assume nobody has read it and just pump the sexy looking IRR number? After all, it doesn’t take much looking to find script that indicates…
CMC is highly sensitive to process plant head grades, gold and silver prices, and operating costs. Variances associated with these factors pose a high risk to the project economics.
Based on this TR, the Qualified Person recommends additional drilling and exploration activities designed to upgrade the existing Resource classifications and expand the current Mineral Resource inventory. Details on the extent of exploration programs are to be determined however are estimated to cost up to US$1M to US$2M per annum over the next two to three years. In addition, associated mine rehabilitation and development costs could be up to US$3M.
The Qualified Person also recommends additional technical studies aimed to reduce risks and increase the level of confidence regarding CMC advancement. Depending on the level of detail for technical work, these are estimated at US$600,000 to US$1,000,000 over the next one to two years.
…how much of a White Elephant this project is. Though one thing’s for sure; if they decide to ignore the PFS or FS stages and move straight to development and construction on the back of this PEA, we’ll know far more about GPR’s management than we ever will about Coricancha.