"they suspect that we have too much gold for an organic mine"
Is that something you've heard from management or something you've put together?
As far as I can tell, their thoughts of the amount of gold in the ground hasn't really changed for the last 6-9 months. Trial mining confirmed the continuity of trenching grades (albeit depending on GIC) and some veins splayed out in certain areas. They've discovered some new areas worth following up on as well, but nothing that I can see that necessitates a complete change in the previous strategy. The organic growth strategy seems to be one they pushed pretty hard with it being mentioned at every possible opportunity.
You'll be hard pressed to convince any shareholder that doesn't agree with the dilution to change their opinion.
The only positive I can find in the placement is if they decide after the scoping study on Buccaneer, that they can prove that greater shareholder value mining the two resources at once... but even then Id guess that we'd need a further dilution in order to come up with the capex for the plant needed... but that really isn't my area of expertise!!
Cheers Uttsy
ABU Price at posting:
2.4¢ Sentiment: None Disclosure: Held
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