I don't think this was an oversight from management. They had an army of consultants and a very capable team working on this study. Brendan is a calculated operator.
My hypothesis is that the current JORC resource was marginal due to sub-optimal recoveries using open pit design due to high proportion of oxide ore (that is stated in the SS), hence the delay to optimise process (autoclave v roasting) to try and make open pit scenario feasible and release something more palatable in October. Then spent the last few months trying to make this happen. Then, late in the game they had the shallower and higher grade hits to the west and scrambled to include this data into their modelling to increase viability, which it did. They were then faced with the option of releasing a marginal but compliant SS using the JORC resource and getting hammered by the market OR to include the western zone knowing that they would be crucified short term for non-compliance but that this would be more representative of the mine plan they would ultimately pursue once the resource upgrade etc was completed and released later in the year. So the result as I see it is that holders get shafted at the moment, but that funding discussions will take place based on mine plan that we will ultimately pursue once western zone is able to be included.
This is purely my speculation on the events that led us to where we presently find ourselves - guess we will find out in due course.
CLA Price at posting:
7.5¢ Sentiment: Hold Disclosure: Held
(20min delay)