Here is where we stand today. Timeline: 12th January 2018...

Here is where we stand today.

Timeline:

• 12^th January 2018
  Commissioning of the much larger 25tph hammer mill is on track for completion in January
  
  
• 24^th January 2018
  25 Ton/hour hammer mill now onsite and being commissioned bringing total mills to three
  
  
• 31^st January 2018
  A 1,000-tonne bulk sample of the tailings will commence shortly from Hammer Mill 3
  A fourth Hammer Mill (25 tonne per hour capacity) has been ordered
  
  
• 19^th February 2018
  Larger 25t per hour Hammer Mill 3 has been installed and will be commissioned on Monday 19^th February and should reach full production on Tuesday the 20^th. Commissioning is 6 days later than the 3-day delay already announced due to excessive storm conditions, the Carnival holiday season and the delivery of wrong sized hammers.
  This larger mill will be run on one shift initially, but a second shift is planned to increase its daily use to 12 hours once we are confident it is running smoothly.
  Processing of the 1,000 tonne tailings bulk sample will not commence until the second shift starts on Hammer Mill 3.
  
  
• 27^th February 2018
  Results from our Hammer Mill 3 commissioning will be announced shortly.
  Upgrading the 4^th hammer mill, that is scheduled for delivery in mid-March, from 25tph to up to 50tph
  
  
• 9^th March 2018
  We are currently processing 1,500 tonnes of ore and development ore that sits at surface through our Hammer Mill 3. The results of this first commissioning campaign will be announced shortly.
  We have a fourth on its way that will be capable of processing 50tph
  
  
• 23^rd March 2018
  Commissioning of Hammer Mill 3 at Cascavel is going to plan and a second shift will begin on March 26^th.

Since January, we have found out that:

1) The 1,000 tonne sample has been increased to 1,500 tonnes.
2) A second higher capacity mill has been ordered.
3) A second shift has commenced on Hammer Mill 3.
4) The company has raised capital at a premium to the 10 day VWAP.
5) The company has announced expenditure on exploration, increasing mine capacity, and purchasing new equipment, while maintaining their back to basics mantra of not wasting funds.

Together, this info tells me that the hammer mill commissioning has taken longer than originally planned, but has exhibited positive results which have given the company the confidence to begin increasing productive capacity in earnest.

Things that I have found negative since January include:

1) The multiple re-clarifications of ASX announcements.
2) The discovery of the exploration report by SJB, which should have been released by OGX directly.
3) The lack of disclosure regarding the status of the Anglogold JV.
4) The poor choice of words regarding hammer mill results "shortly".

This is a risky play, don't let anyone tell you different. But at the end of the day, the company has consistently shown that they do have a lot of gold in their tenements. My interpretation of the facts is that they will be able to economically extract the gold eventually, regardless of whatever issues arise in the near term. Thinking three months from now, I believe the company will have announced successful and continuous gold production. That is why I hold.