I had another read of the annual report which is interesting and pretty much flags what has subsequently happened.
"When processing of the open pit stockpiles is completed, ..... a small core group retained to focus on growth through the advancement of the Kavanagh underground studies and the continuation of a measured exploration and development programme.
In addition, the Board will be reduced to conserve cash and Board renewal will consider the skills and experience that are necessary to guide the Company as it transitions to an explorer / developer.
Kavanagh Underground: The next phase of this strategy will focus on the evaluation of the Kavanagh Underground project ......... In 2020 Hillgrove plans to advance the project through further drilling and progressing of the underground study.
Hillgrove will also progress the advanced discussions it is having with multiple parties seeking a suitable funding partner in the event that the Kavanagh Underground project should proceed.
Other Growth Projects: In addition, Hillgrove will continue to identify opportunities to increase shareholder value through exploration, including the South Hub mineralisation(3), nearby exploration opportunities such as Stella and North West(4), and the broader south east exploration tenements, on which Hillgrove will continue to undertake low cost exploration to further demonstrate the iron oxide copper gold (IOCG) / porphyry prospectivity of the region."
I think they should scrap the last paragraph along with unessential maintenance and rehabilitation until positive cash flow is there to fund It.
HGO Price at posting:
3.9¢ Sentiment: None Disclosure: Held
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