A few thoughts on the drilling focus while we wait for more lab results.
The Company Presentation on 4 December 2013 states a very clear short term objective; ie the
"JV will initially focus on the higher grade sulphide prospects to delineate enough resources to commence a low rate - low capital – high margin operation to generate free cash flow".
The Altynobe prospect has been described as Oxide Ore with Sulphide at depth so this could explain why, after some eight holes, the rigs were moved from the Altynobe to the Sharykty prospect.
This may mean that the ore at Altynobe requires a different process or is more expensive to process than the simple leaching process for higher grade Sulphide ore and is therefore a distraction, for the time being, from the main objective, which is to generate free cash flow as soon as possible.
This was the way Sandfire developed early cash flow for development and given the depressed mining sentiment and low mineral prices at present, this would appear to be a wise way to move forward for exploration and to secure funding.
GTE Price at posting:
9.9¢ Sentiment: Buy Disclosure: Held
