Typical first entry for me though and may or may not buy more depending on what transpires.
Has a feel about it to me...now closed down, the "309 mine" previously opened in 2006, ore was hauled 280 km to Rishton Mill (about 3km south-east of Charters Towers).
From their web site...
"Fixed costs of operating the Twin Hills Mine and Rishton Mill were high and required ore to grade over 15g/t gold to be profitable. Unfortunately this grade could not be achieved consistently, so the mine was closed."
The stock eventually was suspended,
That was gold US$400 ago!
None the less, whilst potentially profitable now, operations would still be marginal, which is why the company's current focus has returned to exploration, with the view to increasing reserives and one assumes critical mass to support a stand alone operation.
Drilling was to have commenced last week...one would guess with at least one "directors hole" to kick off the campaign?
lol
However, for me, this is not the main focus of immediate upside.
With a new board, new capital, new focus and one assumes new support base, no debt and $1.9m cash...a decent period of softnes since relisting to let stale holders out...and most importantly, the bedding down of directors options (ex 5c) just days ago, it looks to me like all loose ends have been secured in preparation.
Preparation for what?
The spike in both volume and price the very next morning after the directors were effectively "set"...and the fundamentally cheap nature of the stock relative to peers (and indeed relative to US$1002 ounce gold), suggests to me that at just 2.6c this very much has legs.
The big move in my view will be via acquisition, the clues to which we have been clearly given...numerous times.
To do so, now all key people are set, they will want the share price as high as possible...so my real interest is of a corporate nature as they prepare the stock to support a decent acquistion.
Cheers!
BMO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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