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2.5¢ st george mining limited

Very clearly and logically summarised as always Sandy. Well...

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helmenesh

1,195 Posts.

1035

06/05/21

15:38

Post #: 52989878
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Originally posted by SandyC: ↑

Hi GC

Thanks for sharing this ****** interview.

I for one will not be happy if the current funds totalling around $8.5m (including the $7m just raised) are projected to last into next year or the year after or that JP is even quoting another CR in that same timeframe.

The reality is that the longer the cash lasts the less money will be used on diamond drilling as the fixed staff and admin costs will eat up the cash resulting in less "bang for our buck" and less metres drilled per total dollar spent. Admin and staff costs are approx $2.2m per annum so over a 12 month period only about $4m will be used for diamond drilling at MA with the remaining funds used on surveys, DHEMs, metallurgical work, JORC, scoping study, approvals, consultants, RC rigs at MA and Paterson, and around $1.5m in cash reserves remaining before another CR is due. With the $4m they will achieve around 20,000m of actual diamond drilling at an average of $200 per metre with 1 diamond drill rig working 24/7 drilling at an average of 60m per day for 333 days. Sure they may use the very occasional 2rd diamond drill rig for a very limited time as they have in the past but this is just not enough drilling and not a smart way of investing the funds.

If St george is serious about being an explorer and producer on the verge of a major discovery and mining operation then the time has come where they need to be using 3 diamond drill rigs on site simultaneously drilling 24/7 for 3 or 4 solid months and do another potential CR in 4 or 5 months at hopefully a much higher share price. If the results at not good then whether the CR is in 4 or 12 months it won't matter but what does matter is that using 3 rigs simultaneously means that over a 3 month period they would have $5.65m to spend on the diamond drilling ($4m as per above plus $1.65m saved in admin and staff costs) and be able to drill 28,250m instead of 20,000m (8,250m more than if they spread the funds over 12 months). This equates to extra 10 x 800m deep holes to pierce something special and will result in much better value for money spent, an accelerated discovery timeline, and St George working harder for shareholders. If they then need to raise more funds we at least know they gave it their best shot.

In addition, it was mentioned that the shallow mine would be operating within 12 to 18 months which to me means next year or the year after so why are they even thinking about another CR in that same time frame and instead not pushing for an operational shallow mine to come on stream much sooner as that is where all the cash they need will come from and best of all no more dilution.

Whilst I am very positive about St George discovering something special and appreciate managements efforts to date it is time to accelerate the process by using MULTIPLE diamond drilling rigs simultaneously 24/7 for a full 3 plus months at a minimum as many of us have been suggesting for some time now.

Bottom Line - We all need to be lobbying JP to get more diamond drilling rigs on site!

Cheers SandyC

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Very clearly and logically summarised as always Sandy. Well done!

Helmenesh.

SGQ Price at posting: 9.0¢ Sentiment: Hold Disclosure: Held
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