Jackapit, One of the biggest problems for the company IMO was the fact in the end they didnt know where to mine. They had put the infrastucture in place with a new winder and the gravity feed gecko plant after many issues however they were mining the dickenson reef at low grades (for UG mining) which were not covering costs. Whilst I have never spoken to Nick many on here reported that he didnt want to prove up a reserve with a JORC because of the cost involved and I think that was a huge error. No point having all the gear when you cant find the grades. I think they just took this part for granted. It was also discussed here that quality airleggers would be hard to come across to chase the veins. From other companies I follow or invest in they model this rather than mine and hope. The fact they only mined a small amount of ore also didnt help the scale. The company didnt give too much info in this department either. From what I have read I think gold could explode over the next 12-18 months which may bring some money back into the sector and therefore the company. It will have to be reletively soon if they want to survive. I have had some big investment learnings from this company!
MCO Price at posting:
11.0¢ Sentiment: None Disclosure: Held
