looking ahead
posted on
Jun 16, 2008 08:24AM
SSO on the TSX, SSRI on the NASDAQ
the first piece of news we have to look forward to is the new resource estimate from pitarrilla. since they are doing step out drilling to the north and east of breccia ridge, we should see an increase in the total resource, not just better definition.
later this summer we should also have an update on diablillos. this won't move the stock price (it should, but with the shorts sitting on it, nothing moves the stock price) but it is important because diablillos is also in argentina. in the recent conference call, quartermain mentioned the fact that sso has geographical diversification by having projects in many countries, so if any country alters its tax rates, the company can redeploy its exploration funds elsewhere.
translation: if argentina goes overboard with its export tax on concentrates, maybe we don't develop diablillos right away.
in the fall, esperanza should have a new and larger resource estimate for the san luis project, which would help both companies, although them more than us.
then perhaps in october we will see the commissioning of pirquitas, and the company becomes a producer, so the more hidebound funds will finally be allowed to buy the shares.
and by the end of the year, a scoping study at pitarrilla, to get a better idea of how to develop the monster. there is still no timeline on a full feasibility study on san luis, but i doubt that will be far behind.