I appreciate your DD perspective. Your comments on AXU are more like the way one would look at a senior producing company with with poor reserve growth prospects. This company only has one year of production. They are also a robust explorer as well in a very high grade property. The prospects are good for large high grade deposits. They also know the area well, and may be looking at other properties that few know about, especially with the environmental business that can gather valuable intel. The Yukon is slowly turning into a mining boom region, and Alexco is established with good political connections.
What is your estimate for silver reserves, say two years out?
My concern with AXU is not it's resource body(ies), which I think have enormous potential. My concerns relate to their ability to extract and process it in a cost effective way. This presents a major challenge to most junior mining companies and very few are able to pull it off. Current production problems appear to be worse than thought prior to recent earnings release and CC. AXU may have gotten into production in record time, but they were very short sighted in the design and construction of infastructure and I think it will continue to restrict their production for the next 12-18 months. For now AXU is going to have to rely on drilling results along with a rising POS to maintain or increase its SP.