Pitarrilla is an important development asset in our portfolio with significant mineral resources and mineral reserves. However, with the recent acquisition of the Marigold mine, our resources need to be prioritized appropriately. Additionally, with extraneous factors such as the new Mexican mining tax and royalty regime, prevailing metal prices and the national moratorium on aquifer water drilling, we have decided to postpone major project activity on Pitarrilla at this time. We will consider advancing the project based upon priorities when conditions are more supportive.
This is terrible news and will probably push the stock down to $7 or lower. This was their next project and it was literally the project that was going to turn them into a huge silver producer. Pitarrilla was going to produce 15 million oz for 30 years. Let's just hope they can obtain water rights, or else this stock is not going to provide the returns I was expecting.