Black Swan Production Restart, page-78

Still no one can answer me.
WHY does POS need $30M cash NO DEBT today?
The official reasons of mass drilling/studies are not adding up for me. these are -

" Funds will be applied towards:
o Exploration drilling at Golden Swan to explore the Southern Terrace and parallel structures
o Resource drilling at Silver Swan to convert existing mineral resources to ore reserves
o Undertaking mining and production studies to consider the potential recommencement of operations at Black Swan
o Reviewing exploration and development potential of Lake Johnston and Windarra
 Drilling to immediately commence as the Company sources additional drill rigs to further accelerate its proposed program of works
 Post placement, the Company will have approximately $27.0 million in cash (before the SPP) to progress toward commencement of operations at Black Swan and undertake exploration activities across the Company’s projects"

The wording there is very revealing -  "to progress toward commencement of operations at Black Swan.."

How do they progress to commence operations at BS using this warchest of $30M cash NO DEBT if they dont even start up the processing plants, how does one produce without processing if DSO is not used. Clearly GS cannot sustain a DSO operation at 5.5% grade but SS might at 9.1% but that is still way below what most offtakers require of 15-16% which has a massive cash premium.

So GS SS ST all require processing at BS anyway so might as well process it there and get the money bags!

The moneybags are in processing using BS mill and the higher the grade the lower the impurity the more the margin & cash & the easier to export using a nonBHP offtaker like Trafigura who can send it to BHP refinery/smelter anyway

This is what POS can do with $30M cash =
- 4 years of massive drilling at current rates
- 2 years of massive drilling tripling the drill rigs now on site (havent seen any such move yet, only 1 new rig discussed to SS/Gosling)
- 8 years of management admin wages without any more drilling at all
- another 8-10 large 2 vehicle size drill drives all around GS SS ST at the BS UG mine declines, a total of 5km of UG drill drives at double the size
- or 81% of the funding stated in the scoping study to restart BS mill circuits 1 & 2 both in 6 months

Please explain to me how do they commence BS operations without the plants or any preparation?
Will they drill for the next 4 years straight and build JORC to 1MT and then look for more without any revenue?

81% is close enough for me, the rest can be paid by AF or the offtaker
After that the HIGH MARGIN production will pay for itself immediately on restart.

And once this starts it aint stopping for decades imho
They will discover like WSA FMG MMurrin/Glencore did, they can produce at ANY NP from there.

START UP the MONSTER processing plants.