The problem here is that the company still claims that they can produce a JORC by end of Q2. Now I don’t doubt that because you can get a JORC from only a few holes if the spacing is right, but many assume it’s going to be from the completed 20,000m.
Based on previous holes, it seems like each rig can drill two holes a month. Let’s assume another 4 holes by the end of April, that will give us 15 holes (13 useable as one was drilling for water and one was abandoned). Let’s also assume the fifth rig arrives in May so for the next 2 months we get another 20 holes by end of June. So max 33 holes if no other issues. At 400m each, that’s 13,200m. Not quite 20,000m.
And let’s not even talk about the lag in assay results. It takes two months to get assays so any holes drilled after the start of May will probably not make the end of June JORC which means we will be back to calculating the JORC from the 13 useable holes.
Pretty sad but that’s the result of the drilling rate.
Please let me know if I’ve missed something.
AVZ Price at posting:
22.5¢ Sentiment: Hold Disclosure: Held
