SGQ (ASX) Ann: Quarterly Activities and Cashflow Report

Originally posted by SandyC: ↑

Hi GC

Thanks for sharing this ****** interview.

I for one will not be happy if the current funds totalling around $8.5m (including the $7m just raised) are projected to last into next year or the year after or that JP is even quoting another CR in that same timeframe.

The reality is that the longer the cash lasts the less money will be used on diamond drilling as the fixed staff and admin costs will eat up the cash resulting in less "bang for our buck" and less metres drilled per total dollar spent. Admin and staff costs are approx $2.2m per annum so over a 12 month period only about $4m will be used for diamond drilling at MA with the remaining funds used on surveys, DHEMs, metallurgical work, JORC, scoping study, approvals, consultants, RC rigs at MA and Paterson, and around $1.5m in cash reserves remaining before another CR is due. With the $4m they will achieve around 20,000m of actual diamond drilling at an average of $200 per metre with 1 diamond drill rig working 24/7 drilling at an average of 60m per day for 333 days. Sure they may use the very occasional 2rd diamond drill rig for a very limited time as they have in the past but this is just not enough drilling and not a smart way of investing the funds.

If St george is serious about being an explorer and producer on the verge of a major discovery and mining operation then the time has come where they need to be using 3 diamond drill rigs on site simultaneously drilling 24/7 for 3 or 4 solid months and do another potential CR in 4 or 5 months at hopefully a much higher share price. If the results at not good then whether the CR is in 4 or 12 months it won't matter but what does matter is that using 3 rigs simultaneously means that over a 3 month period they would have $5.65m to spend on the diamond drilling ($4m as per above plus $1.65m saved in admin and staff costs) and be able to drill 28,250m instead of 20,000m (8,250m more than if they spread the funds over 12 months). This equates to extra 10 x 800m deep holes to pierce something special and will result in much better value for money spent, an accelerated discovery timeline, and St George working harder for shareholders. If they then need to raise more funds we at least know they gave it their best shot.

In addition, it was mentioned that the shallow mine would be operating within 12 to 18 months which to me means next year or the year after so why are they even thinking about another CR in that same time frame and instead not pushing for an operational shallow mine to come on stream much sooner as that is where all the cash they need will come from and best of all no more dilution.

Whilst I am very positive about St George discovering something special and appreciate managements efforts to date it is time to accelerate the process by using MULTIPLE diamond drilling rigs simultaneously 24/7 for a full 3 plus months at a minimum as many of us have been suggesting for some time now.

Bottom Line - We all need to be lobbying JP to get more diamond drilling rigs on site!

Cheers SandyC

Expand

I like your thinking Sandy but unfortunately JP does not have the drive and knowledge to manage this amount of onsite activity. We have all witnessed the very slow progress achieved in the last year. We have set a new record for the time to complete a scoping study. We are talking about a single open pit delivering ore to a very small concentrator and producing 2 concentrate products. This is bread and butter stuff for any engineering company in WA. It should only take 20 weeks maximum.
i agree SGQ have great potential to discover a large resource in this deep drilling programme. It could announce a major intersect at any time. Well that is what JP has said on multiple occasions yet we have one drill working. We have the money now. We have new targets so where is are the rigs JP. Do your job or appoint someone to drive this forward.

go SGQ

No.	Vol.	Price($)
2	282712	2.5¢

No.

Vol.

Price($)

282712

2.5¢

Price($)	Vol.	No.
2.6¢	167447	2

Price($)

Vol.

No.

2.6¢

167447

No.	Vol.	Price($)
2	282712	0.025
1	1500000	0.024
3	1996091	0.023
2	3487040	0.022
3	360000	0.021

No.

Vol.

Price($)

282712

0.025

1500000

0.024

1996091

0.023

3487040

0.022

360000

0.021

Price($)	Vol.	No.
0.026	167447	2
0.027	323400	3
0.028	509799	4
0.029	365701	2
0.030	402784	2

Price($)

Vol.

No.

0.026

167447

0.027

323400

0.028

509799

0.029

365701

0.030

402784

(20min delay)
Last 2.5¢		Change 0.000(0.00%)		Mkt cap ! $24.71M

Open	High	Low	Value	Volume
2.5¢	2.5¢	2.5¢	$1.765K	70.59K

Ann: Quarterly Activities and Cashflow Report, page-32

Ironbark eyes lithium and niobium opportunities with 7 new Brazilian projects

ASX200 dives as inflation clocks in at 4% – higher than 3.8% consensus

Peregrine extends high-grade gold shoot, sniffs anomalism at WA's Tin Can

Polarx discovers thick sulphide mineralisation at Alaskan Cu project

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Quarterly Activities and Cashflow Report, page-32

Top Stories

Ironbark eyes lithium and niobium opportunities with 7 new Brazilian projects

ASX200 dives as inflation clocks in at 4% – higher than 3.8% consensus

Peregrine extends high-grade gold shoot, sniffs anomalism at WA's Tin Can

Polarx discovers thick sulphide mineralisation at Alaskan Cu project

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News