The plant at Lorena comes with surrounding mining tenements with licences in place I believe, so I'm guessing they are going to mine and process there - mind you, they haven't said that, that's just my best guess. I would think they would be using Lorena to generate enough income to make CRs unnecessary, and then bankroll Mt Freda with any gravy. I can't imagine hauling from Mt Freda to Lorena would be cost effective, given the roads are not great from the Landsborough Hwy to Soldiers Cap and the travel time would be about a 2-3 hour round trip.
As for the spend on Lorena, for all the hoo-ha about them paying $8M - only $5M of that is cash, the extra $3M is a share issue subject to SH approval (i.e. free for Tombola, with a 10% dilution). They had about $2.5M at the end of last quarter, have recently raised $10.5M, minus the $5M for Lorena still leaves them with $8M capital minus expenses April to date - they are cashed up enough to not need a CR for a long time, I'd say if they don't stuff up Lorena and stop wasting money on step-out drill holes 20-40m from existing holes, they'll be in a good position and things will fall into place. Touch wood. All IMO, DYOR
TBA Price at posting:
3.8¢ Sentiment: Hold Disclosure: Held
