I don't mind them heding production if it actually means them producing some gold. Sure this announcemet is a step in the right direction but how is CTO going to fund their $35m of the JV assuming it goes ahead? That represents a large portion of the company's current market value.
Warrior is still bleeding cash. Sure production is slowly ramping up and their reported profit margin's (low cost per ounce) are strong given they capitalise alot of their drilling costs but that doesn't change the fact that they arn't generating cash flow which is what the company needs to continue to grow/survive.
If this next quarter is below expectations they will have a hard time raising more equity. If the JV goes ahead i just hope that the Chinese company can bring some competent management to project to substitute for CTO's management.
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