Unfortunately for existing shareholders, Gus has only now realised that "the cost is prohibitive to undertake the necessary drilling to undertake a "definitive feasibility study (DFS)" over the entire project" after wasting shareholder funds on numerous attempts at finalising a DFS.
Shareholders should be asking themselves why is the cost prohibitive now when the following statement/ announcement made on 14 July 2010 clearly indicated that a full definitive feasibility study for 'Lance' was always part of the company strategy:
14 July 2010 - "The Company will commence work on the Definitive Feasibility Study (DFS) immediately. PEN expects that the current level of drilling at ROSS AND BARBER (THE LANCE PROJECT) will convert the majority of the existing inferred resource to indicated status over the remainder of 2010, such that it can be considered for conversion to a reserve as part of the DEFINITIVE FEASIBILITY STUDY".
Why has it taken the company 2 years longer than expected to achieve a 14.7mlbs indicated resource which still falls below the target of 15.1mlbs they set for themselves in July 2010.
Why does the LANCE PROJECT now have to include Kendrick as well for there to be sufficient JORC resources to ensure that Lance is feasible?
If it has taken them nearly 2.5 years to prove up 14.7mlbs of resource in the indicated category, how long is it going to take to prove up the remaining 23.88mlbs they need to match the resource they have used in their latest 'feasibility study'.
PEN Price at posting:
5.3¢ Sentiment: None Disclosure: Not Held
