Well in the half yearly report it opens with …“Pacrim’s focus during the period has continued to be on the Redcliffe Project as the Company heads towards production and works to increase near surface gold resources” It also goes on to say that “Consultants have been appointed to prepare a mining proposal for the Golden Terrace South gold resource within a conceptual open pit shell.”
Next with the latest quarterly they progress this with…“The Company is in negotiations with a number of parties with respect to mining, trucking, and treatment alternatives for production from proposed open pit operations. Data for the Mining Proposals for areas selected for early development has entered the phase of Flora and Fauna surveys with crews on-site in coming weeks”
Now maybe I am reading between the lines too much, but this all seems like a heck of a big waste if you see yourself running out of money before you can complete your goals.
They said in the half yearly that…“The Company completed a Share Purchase Plan during the first half of the year raising $1.5 million to be utilised in advancement of work programmes. Very strong shareholder support resulted in early closure of the issue which was almost two times oversubscribed.”
So they may intend to do another SPP, fan some shares out to SI’s like EXM did, or they already have what they think they need, and have maybe been in negotiations with a third party to help absorb the expense of extraction the whole time. We are getting good grades at shallow depth so it’s not that hard to get to. Also their estimated cash outflow for the next quarter is only 300k, so that’s not too bad.
It seems reasonable (to me anyway) that they are most probably talking to SBM about a joint venture or something along those lines. This could allow them to begin a cash positive phase in their development sooner rather than later and continue with their other projects. As for a time frame, well my version of “very soon” could be the end of 2010 or maybe earlier. I have been holding long enough now that that’s ‘soon enough’ to me.
With regards to the very low SP, well I am just as curious about its levels as the next guy. However quoting their release once again …” The geological review has been completed with an updated resource estimation to be released in the coming weeks.”… so with this information, and the DOW and Gold heading north again, I think the days of 1 cent will soon be behind us.
That’s about as much as I can put together to validate my post that "We are going to be an operating mine very soon if all goes well".
I am sure that my argument has more holes in it than a block of Jarlsberg cheese, and will be picked apart accordingly. However I don’t claim to be an expert in the field and can only go on what I read and interpret from the statements made by the company.
All of this is just IMHO and maybe worth less than the time it took to write.
Regards Livelife2day
PRE Price at posting:
0.9¢ Sentiment: LT Buy Disclosure: Held
