Another CR around the corner, page-45

I’ll call a spade a spade.

This is a dog stock, trying to mine a very small high grade reserve on a small scale with a hodgepodge of mining equipment and now a retro-fitted processing plant with hammer mills that are struggling to produce results. What’s more the company is in debt to company the MD used to work for and their chance of paying down that debt is slipping by day by day IMO and the chance that they will need more money in another raising is rising day by day IMO. The mine was backdoored onto the ASX more than 4 years ago and has sucked in punters all the way along (even myself at the first commissioning of the new processing plant when the company had a MC of about $60 million). It’s produced bugger all gold in all this time (go and add up the total production in the last 4 years) and it’s got little hope of ever producing much gold as even if they fix their problems the scale of the mine won’t be changing with low productivity high cost hand held mining methods and ore extraction through low tonnage assess points. This has been badly managed all the way along IMO and is not a good story and it’s not just one fix away from producing wealth for shareholders IMO. They will keep flashing the photos of visible gold and highlighting the high grade drill results until they run out of people willing to back the story and then the mine will go back to just being a 300 year old pit with three winzes in a hillside dug by garimpeiros and landowners just like it was before the stock promotors of the ASX came along.

Also remember that TRY mined 289,144oz at 16.7g/t from the Sertao oxides before walking away. It’s unlikely there is any easy gold left at Sertao. Any remaining gold is likely to cost money to drill and develop.

While OGX had an exploration JV with Anglo, exploration stood a chance of success but going it alone with exploration while trying to fix a badly planned and commissioned mine is beyond this company’s pay scale IMO. As the MD said every single consultant that visited Cascavel said it needed ten and tens of millions of dollars of CapEx to fix. This mob has backed themselves to do it on a show string and they need to produce results fast or the share price will be back where it started before being discovered by the FOMO crowd. Esh