As I stated before I feel the downward tracking of the share price is due to the comment by Andrew that they were looking to do deeper drilling . That always sends alarm bells for me as the deeper each hole the higher the cost per hole drilled , and at say over 250 meters even the drilling cost per meter increases as having to move to Diamond drilling , so hit with a double wammy , more meters and higher cost per meter drilled , so cash burn increases a lot faster and
so all things being equal less bang for the buck.
If he has sufficient knowledge that he feels he can follow a dike down deeper and it will throw off higher grades then I am all for it , however , he has so much potential strike I prefer the cheaper air core drilling along strike ,
hitting shallow intercepts also means potentially shallow mining means lower Strip ratio if OC so do not need as high a grade per tonne to justify mining and processing oxide tends to be cheaper on OPEX and CAPEX than transition or fresh .
Drill shallow , mine it , then drill from the pit base is to me the logical progression , not put in deeper holes early on unless have high conviction of getting a low cost per oz drilled .
GBR Price at posting:
5.7¢ Sentiment: None Disclosure: Held
