To Newscat - Think there is more than a little spinning going on here. Very risky strategy to start mining without a JORC resource. A few other wildcat statements from the release -
1) No audit or review has been undertaken regarding results reported in this announcement (why would you not do this for such a seemingly important announcement)?
2) No specific gold production targets can currently be quoted as there is no JORC resource. (Surely they should then at least tell shareholders what their targets are - or must be assume it is around 40,000t / annum based on the capacity of the gravity circuit?)
Hope they have at least done some back of the envelope numbers to see if there will be any return on investment in both the best and worst case gold recovery scenarios (via a basic resource range desktop exercise). Pre-production expenditure estimated at $6.6. What will ongoing mining costs be and projected profit per ton (or is that asking too much)? Will be interesting to see who will be willing to provide debt funding based on this scant information. If they are lucky enough to source funding it will most likely come at a heavy price to shareholders (unless they do a proper Jorc report and FS).
This could go either way as they could be lucky and encounter heaps of mineralization or they could find that the best grades are around the decline and not wide spread across the property. High risk stuff closer aligned with gambling than investing.
But then again - I could be totally wrong......
TRF Price at posting:
4.0¢ Sentiment: None Disclosure: Not Held
OGX Price at posting:
8.9¢ Sentiment: None Disclosure: Not Held
