The plant is working, without a doubt. It's the recovery that's in question. Management have said that with the existing plant they will hit their performance targets of 1000-2000oz per month. We know that the plant has produced 110oz over a two day period - that's a known fact. I'm expecting that to improve dramatically when they begin mining Level 6 based on the massive improvement in grade reported this week.
Why the fund raise? To continue exploration at pace and advance Sertao, that should include CIL and as I've said before, it's possible they have sourced a 2nd hand plant already - speculation on my part. Could be to prop up Cascavel? We'll find out over the next several months.
OGX Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
