Plough said - " find someone who can also the speed of development on the drive needs to be 200 metres per quarter with current crew not half that as last quarter. Rock removed per man hour needs to be bench marked with what is achievable in WA."
Absolutely agree Plough. This result is entirely unacceptable.
Sounds like some genuine accountability is required. To have all the meetings you want, without benchmark redress, is wasting this opportunity to everyones detriment, including the local community.
Just a few observations and ramblings - imo.
'During the Quarter the Company purchased two 40 tonne underground dump trucks ($70,000) and
employed one additional miner and one part time truck driver / fitter, with the objective of accelerating
decline development to the 1080 level and de-bottle necking the removal of dirt from the mine. A lift in
production has already been observed and should accelerate into the next quarter. Approximately 100
metres of capital development is currently required to access the 1080 level, with an additional 30 metres
of sustaining development associated with sumps and ore stockpiles.'
So only 130m to go. Even at the present poor rate of 100m per quarter, that sounds like less than two quarters to me, with about two months to spare. Not factoring in the positive courses of action being undertaken such as removing the ore bottleneck. Therefore:
$1m in the bank left, raised at 5c. $500K MINE DEVELOPMENT cash burn rate per quarter if things DON'T improve and stay same. That IS NOT admin cash burn only, IT IS setting up mining for gold with no debt! Two whole quarters to achieve positive cashflow self-funding status. We are on the eve of achieving the realisation of many years effort - debt free.
What's the negative case for downside risk after six months - perhaps some non-dilutionary debt at that point, that may only need a few weeks mining paydirt to pay back in full. Oh no a couple of hundred grand, it makes you gry (cry) doesn't it, on the way to a 30,000oz pa long term target. Of course there are financial and operational risks involved. No guarantees.
HOWEVER the positive case, reducing the $500,000 deficit significantly to preserve the $1m cash. How is this to be achieved?
'Mine development will be kept to a minimum width to reduce dilution'
Less width means more meters achieved, and higher grades, (all else remaining equal).
'Development of the 1120 level will be delayed to focus on development of the 1080 level that is
believed to be higher grade and closer to the core of the deposit '
I take that the mention of 'higher grade' to be development that OUGHT TO BE tending towards lower risk ore helping to achieve a better result and less cash burn in the next qtr. AND advancement to mining at the core as the priority to maximise oz's in the immediate term upon completion of the 1080 level.
Conclusion - The ORS team have something to prove this quarter. No bottlenecks, no excuses.
Is it time for management to explain in a simple and clear presentation why and how the ORS planned mining methods are more cost effective in the longer term ie lower production costs, but more expense involved in initial development to us simple retailers. And the significance of this achievement without debt? With an UPDATE on progress, ASAP.
Oh and, an UPDATE on progress, ASAP.
And finally, an UPDATE on progress, ASAP.
All personal rambling and imo.
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