Q: I understand GOT is planning to drive an exploration adit at its gold prospect. Do you feel they have done sufficient drilling to justify the adit? I anticipate the adit will escalate the exploration risks / costs. I note no major gold miner has taken an interest in the project as I don’t consider McEwan a major player. Any thoughts you have would be appreciated.
Jim
Jim
5i Research Answer:
We are not geologists so don't feel really comfortable commenting on what they are planning. It's a risk, but the company wants to easier access its high-grade ore, so it is at least a strategic plan. Like any mine expansion or otherwise, there are risks, but if average grades can be improved and a longer drill season achieved, it could be worth the risk. Certainly costs will increase. The stock has done very well and the last stock issue (October) was at $1.44, so another financing in 2025 would not surprise us. While no major has declared an interest, they may still own shares, just not in an amount that requires legal disclosure. With the strong stock momentum this year, we would not view this news as all negative.