“There’s a reserve at La Jojoba in the Northeast Zone and it’s 200,000 ounces of gold in proven and probable reserves. Jojoba is 300 metres long and 150 metres wide. This zone, Campamento, which we’ve now hit—which is only about 300 metres south of Jojoba—has got very high gold numbers, and we’ve got a lot more drill data and news coming very steadily in the next week. It is 1,500 metres long and 900 metres wide, with anomalous gold-copper in two enzyme leach studies and in all the structural stuff. So that’s the size of this anomaly. Our target here, now, having hit gold with some exceptionally good results as we drill this out in the next three to six months, is a million ounces of reserve potential. So the property goes from 200,000 ounces right now to potentially 1 million to 1.5 million ounces. So we’re looking at five times the valuation in metal content.
“We’re extremely pleased with today’s results, and we’ve got some more coming. This is the most exciting thing for the company. This property really hasn’t been worked since the 1990s, and it should be looked at with fresh eyes. We’re right between two companies for which there’s a bidding war going on right now, Capital Gold and Timmins. Capital Gold has a 1.5-million-ounce reserve; their market cap is $400 million. With this zone, we’ve got the potential to be at 1.5 million ounces within 4 or 5 months; our market cap is $60 million.
“The plans this year are to increase production and drill non-stop on this—probably accelerate drilling—and recalculate reserves in November. We’re pouring first gold here in April—173 ounces, and it’ll increase steadily until we’re at 1,500 ounces per month by December of this year. Up to 1,700 per month next year. Ultimately up to 3,500 per month.
“My overall assessment is that the company is going to be acquired. There’s going to be a lot of strategic interest in it from larger mining companies around us in Mexico. What is required to get them going? The news today is the kind of thing that can be a major catalyst for that. If we do have 1.5 million ounces, the bidding will start soon. Why pay six times us when we could have the same reserve potential in gold here?”
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