Mien analysis of latest studies and reports commissioned by POS based on scientific postulation.
These essential commissioning works are issued expeditiously by experts with detailed historical operational knowledge of the swan mines/processer. The combined reports will much like a new DFS form basis for early recommencement of mining operations and bring forward settlement of swan mines from norilsk and specify most cost effective operational plan which i surmise will be immediate restart of processer and black swan mine coupled with restart of higher grade ore transport from windarra which boosts income/profits at additional cost of long haul truck transporting 350km and digging. I postulate offtake with BHP will be disregarded in favour of early restart of processer at black swan as suggested in todays last sentence ofannouncement. Also local kalgoorlie experts will likely retain future engagements on this site and POS projects overall boosting local economy and interest, front page of kalgoorlie miner for sure when announce hiring and restart.
Golder will consider higher resources available & update 2007-2009 for 2014 resource statements especially inferred and prospective resources with higher grades boosting economics of restart of processer. This is based on stockpiles and in pit and around pit resources with silver swan as a windarra like higher grade resource that will surprise with upside grade (as is usual with underground NI resources). Golders report as to transport logistics will likely follow the WSA and MCR models of transport with windarra ore to swan which will still be economical at higher grade NI.
GR engineering likely consider processer as fully functional, with lower costs than expected and restart earlier than expected with nominal work other than staff hire and capacity to expand current 2.2MTpa capacity upwards - processer has been tested and upkept by norilsk especially as it was looked at for sale by other suitors. I say dis as processer in functioning good working condition.
Simulus engineering likely consider perserverance BHP processer previously run by cathy who is with POS now and state total cost needed to restart and how long, Dewatering at windarra likely to pump out to below mining level in next few months at current rate just in time for October deadline. I surmise Simulus say $10M- $100M, with environmental obligations longer term than thought and can restart within weeks of windarra being ready to go - chance of lower capex of $10M based on cheaper local contractors/mine workers who are unemployed and motivated to restart work at cheaper rates at their old mine site.
Market expects launch 6 months away in January with higher cost of $100M and no lenders interested, bah humbug - if its cheaper, quicker and processer fully operational for cheaper and quicker as surmised by me then its bulletproof & profitable at any NI price. Market is very skeptical with POS but overly optimistic with SIR and WSA. If GR & Simulus report lower capex, earlier restart and mine plan as i surmise then rocket will likely start its rockets on der dock with 60 tag countdown early August and team will push forward restart to October - then get loan on board with credit line or convertible note and hey presto the AC oscillator works as predicted based on logical mathematical evaluation.
Much speculation on das Komputer dat "they" are holding price down, yet i see no large volume selldowns, just irregular small lots - day traders or large volume sellers have vanished and low volume means buyers waiting with sell side very low. No large sellers anywhere at moment. "They" who sell now do not understand engineering, science, value of research or process of re-commissioning mining operations as once reports come out market will then consider issues i raise above and start der 60 tag countdown.
POS Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
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