Thanks for the input and great points Sam and bar...The thing here is being able to determine potential...Unfortunately I'm no geologist so I can't accurately gather an assessment of just what kind of property they're sitting on...So perhaps deeper drilling will reveal a bit more of what they are sitting on...
Again the answer is that the 43-101 does really not comment on total resources. It just isn't there and I can read much of the report and have. There are some high grade anomalies that would imply very significant further resources (stream bed data, some surface data, and some computer aerial stuff) but that is all just suggestive and not conclusive. The work to determine total resource (or even a significant percentage of total) has just not been done. As I think Sam stated, Goro did not do that. They just found some Gold and Silver and started digging. That is why there is a small float and no debt. Even in the 43-101 (and I did not mark the pages) the engineers specifically state that most to all drill has occurred in conjunction with production goals. There is also one other comment that other similar type veins usually go deep. We are now at only 500 meters and even that deep only sporadically so I would strongly suggest that mineralization most likely continues for another 500 meters and more. As far as the rest of the property goes it is mostly a tabla rasa with as I stated above some suggestive info that supports management's hopes. In a nutshell the report a) supports present resource numbers b) implies at least a significant amount of further resources available for development c) Makes almost no mention of extended resource assets.
Just a BTW, I do not expect this situation to change any time soon. The Reids are going to continue to emphasis drill for production rather than future resource analysis. When there is money they will do the later but that will be a while. You will need to decide whether the dividends make up for the uncertainty, because in the end that is the decision that is being made. The Reids could use the money and borrow more to accelerate exploration drilling and we would lose the debt-free position, the dividends, and the small float for a lot of certainty or we can be satisfied with the present direction of the company. Again your call, but if you are uncomfortable then there are a lot of other companies doing things the other way so take your pick. glty
One small item that I noticed which helped to explain some of the recent events surrounding El Rey is that El Rey is almost completely separated from the rest of the holdings by another village. I assumed that it was more directly connected from earlier maps. That does, just in a topographical, sense look like an issue. It wouldn't surprise me if the next surprise relates to some further delays in the El Rey development timeline. If there is a negative here that might be it. Having to do the work for the bashers. Kind of disheartening. glta