Correction to my last post. I've found the prefeasibility study of August 17, 2009. The economics appear to be very robust, at least on paper. At price of gold $1,050 oz the net present value over five years is $19,527,628. Each $100 increase in gold seems to add another $5.2 million to the NPV. At $1,650 gold, NPV would increase to $50.7 million. That works out to 47 cents per share. This isn't the kind of money to go build your own railroad, but it is certainly a respectable profit. Furthermore, the US dollar has fallen since the report was issued and this should add substantially to the bottom line.

The only question to ask is how will this work out in real life? The QR project also had a very favorable prefeasibility study, and yet even at $1,650 gold, it is still just marginally profitable. Both studies were done at roughly the same time, and share the same authors. Success all depends on the ability of the company to stay on time and on budget for the full five year period.