range river gold misses river of gold

Very disappointing result, but not unexpected,

Good luck to all holders.
nil.

http://www.theaustralian.com.au/business/opinion/range-river-gold-misses-river-of-gold/story-e6frg9lo-1226045572452

Range River Gold misses river of gold

CRITERION: Tim Boreham From: The Australian April 27, 2011 12:35PM

IT'S Criterion's melancholy duty to report the rising tide of the record gold price does not carry all boats along the river to auriferous prosperity.
WA junior producer Range River Gold this morning said it had thrown in the towel and appointed insolvency firm PPB Advisory as voluntary administrators.

Range River, which bought the historic Mt Morgans operation in WA from Barrick Gold in 2009, was an instant producer, selling a ?disappointing? 3686 ounces in the December quarter after progressively re-opening some underground and above-ground operations.

The company was poised to expand the mine to 40,000-50,000 oz, growing to 100,000 oz within five years.

The trouble is Range was working on cash costs of $1843 oz, albeit projected to fall to $1000oz in the March quarter and $800oz this quarter on the back of improved output.

Unlike the collapse of Sons of Gwalia in 2004, the loss-making Range's fate was not exactly a knock-out surprise: the stock has been suspended since March 21 when it last traded at 0.8c.

On April 6, the company reached a standstill agreement with major creditors and Macquarie Bank re a $4.5m prepaid gold facility. Then, on April 18, the company said it was in ?continuing discussions with various parties? about ongoing funding.

In response to an ASX query on April 20, the company said its financial viability would be ?seriously challenged and need reassessment? if agreement was not reached.

Still, the stock was well backed by the likes of Melbourne businessman John Calvert-Jones and Barrick Gold, both with around 6 per cent.

Owen Hegarty also graced the board up until June last year, but, unfortunately for the former Oxiana champion, this one wasn't a case of stronger for longer.