dead cat bounce, page-28

Chris1983,

They certainly hit disturbed ground on level 8 near to the base of the new shaft. But reported improved veins as they pushed out the crosscuts North and South.

It is so often the way with narrow vein mines and why estimations are normally formulated from 'average' vein widths. 'Pinching' and 'Swelling' of the veins is to be expected on all veins at Co-O and actual quality can only be established once development activity along the mineralisation exposes the conditions for mining.

On a more positive note for level 8 they did find a new N/S trending vein (Pedro).

The vast majority of the resource is still above level 8 so I don't see the underlying resource base as being a major issue. When they declared their resource/reserve last year, gold had already taken a hammering and their economic cut-off was still appropriate - unlike many of the larger producers who had to make large impairments as their economic resource bases shrank with the lower PoG.
CPDLC