What about the processing plant?People should be aware that...

What about the processing plant?

People should be aware that Convergent released an updated presentation on 25 Jan 2012.

Page 11 of that presentation is titled "Outstanding Infrastructure", and it has 12 photo's of the infrastructure that CVG purchased.

There is one photo of a processing plant, in the middle distance, down a road, with the title "Processing Plant".

To many people, this would obviously imply, that Convergent also purchased a workable Gold Processing Plant, along with all the other infrastructure.

However, like everything in small cap resource investing, it needed to be validated, because gold processing plants are expensive and time consuming to build.

The response from the company, to my question about the condition of the gold processing plant, is as follows;

(Quote).
"The processing plant is of no use to the company as it is completely rusted."

The question then remains, how much of the other outstanding infrastructure is useable?

Is the accommodation useable?
Is the town electricity connected?
Is the established borefield licensed and useable?
Is the airstrip useable?
Is the kitchen useable?
Are the ablutions functioning?
Are the haul roads useable?
Are the core yards licensed and useable?
Is the Tailings Dam licensed and ready for use?
If not, what work is required to prepare the Tailings Dam?
Is the workshop and office useable?

We await the answer, which would be good to have before deciding on whether to take part in the capital raising.

Don't get me wrong. I like the company. I think the 11 old Bounty gold pits are very prospective for finding a great deal more gold, especially at depth. I think the management are well credentialed and competent.

I questioned the acquisition of a workable processing plant because I thought it all looked too good for the price. And when something looks too good, there is usually a hidden gotcha, or glitch, or anomaly (ie. the rusted plant).

Sometimes in presentations, these oversights can occur. More often than not, it is not intentional. It may simply be a lack of attention to detail, or something similar.

However, like they always say, Do-Your-Own-Research (and do it well), and never assume anything in this business!

Gw