“Well gents*, we need to do something. Commercial production has been delayed again, we’re going to run out of cash, the balance sheet is an unholy mess and we’re going to have to raise via another dilutive placement soon.”
“But that’s going to kill our share price! And it’s already a pig this year!”
“Yeah I know, so we need to think of some way to pump it up and get a bunch of sheep to run it up before we announce.”
“Hey! I have an idea! Why don’t we announce a “three year plan”? We can tell them we’re going to explore and add a boatload of ounces. After all, getting a resource out of all the sulphide stuff we have will be easy!”
“But we can’t leach the sulphide like that! Totally different thing!”
“Dude, the dumbass sheep won’t catch onto that! They’ll just look at the headlines like they always do. This is a way of sounding serious, making it look long-term and adding resources without it costing much. And the longer we do this, the less they’ll look at our financials. We can talk up adding oxide ounces too if you want.”
“Hmmm…not a bad idea. When can you get a NR out there?”
“I’ll put it together this weekend, we can publish on Monday.”
“Great. Do it.”
Welcome to the Rye Patch Gold (RPM.v) news release this morning.
*There are no ladies present. This is, after all, a junior mining management team.