I agree. Back to being an explorer. A cash (LF) backed explorer.
There's plenty of gold in the dirt but they want to find a more value driven supply chain than simply plow the tailing and ruffle around the scrub.
Cheap plant with prospective deep high grade as well as wide and shallow low grade gold for LG and they've been sly enough to build a good team to call a halt to the mud soup Bolliver sold them and focus on the true potential.
It will be fun to see it all play out, win or loss. I can't see any problem at all with the width, grades, and potential untested depth, along with a production line ready to go (excepting impact on local employment, so hopefully they get cracking for that reason alone).
Couple of extra thoughts. Management seem pretty content with getting the wrong numbers out there ... I wouldn't be surprised if we were looking at an additional $5m beyond that already drawn. I like the sound of 50 though with no interest repayable for another three years! I just don't think they can spend anything like that on deep drill rigs in that amount of time.
Those of us holding wouldnt think it, but the chart is actually a bit on tthe bullish side!. Or it will be if one bloke takes a punt and brings it to 0.007.
I think we are seein the start of the compulsory takeover ... With a 50 m commitment if true ten it will come before the drill results. That might take us to 0.012 by mid year. First step soak up anything cheaper than it has to be. Second step don't let it run to0 high. Third step see if they can get away with a 0.012 fair value offer with asic.
Fourth step after we get our Lg shares at half what we were initially offered, hit the 3-4m oz resource with the deep underground veins, reactivate the plant and hit global mid their status.
Plausible? I really like these guys ... Thy seem to be good strategists and committed to achieve and make he hard calls. II really dont like the previous lot though, who had the ground and the plant but were committed to fail and take the easy way out. Go LG!
COLCOM
SBL Price at posting:
0.5¢ Sentiment: None Disclosure: Held
