Agree with the mine care and maint post. Probably, just as well otherwise it would be over for us SH.
Not sure they have burnt thru the million, just that any management would have to react early before it completely ran out.
Unfortunately my feeling is a lot of SH just don't understand the establishment costs of this type of mine and the timeframe to create positive cash flow. Traditionally, all the costs come with developing the levels to the lowest depth with very little gold ore, prior to stoping up between levels when then basically it's all easily won gold ore, no development drivage and the profits flow. ORS are probably some years away from this position with the labour they have engaged.
Not sure what the CR will consist of. Last time funds ran short the million dollar Gandel loan was provided but obviously not this time round. I am thinking private placement to a bigger holder.
With 2shift mining and being able to mine both the north and south face concurrently, drilling one face whilst loading broken ore on the other then place changing ( the drive enters the 1080 in the middle where the 1100 was single entry ) should allow the 1080 level to be mined out reasonably fast. If gold grades are reasonable should provide some short term income. IMO they then may change mine plan and stope between 1080 and 1100 for short term gold ore so maybe just a token funding arrangement to get by.
History would show the area as a prolific gold producer, gold price up, Aust dollar down, the battle for management is to survive long enough to cash in. Hope it works out, plenty of holders hurting at this SP level, me included.
Wassa.
ORS Price at posting:
2.0¢ Sentiment: None Disclosure: Held
