Go North young man. The Northern areas although relatively low grade resources ( 1.3 1.5gpt ) they are supposedly quite plentiful. With a Budget of approx $3M drill out the more promising areas and try to get JORC compliant RESERVES ( Not Resources ) of over 15Mt Perform a BFS and then if all boxes ticked look at commissioning a approximately 1.5Mtpa plant adjacent to the mining areas. When positive cash flow acchieved additional RESERVES to be proven up. If this can be achieved ( and not out of the realm of reality ) then the company can become a medium sized profitable entity. Gold should remain strong for the foreseeable future but if there was a marked drop in price then a lot of operations would be quickly in trouble.
Changes need to be made at Board level though, the company has not been effectively promoted over the last couple of years and punters are reluctant to invest when no information is being released to the market. I have heard that mining has ceased at Alpha but not aware of any release to the ASX in this regard, is this not pertinent?!! I know they have some dirt still to be processed so they should still produce dollars.
Still think that Stone have made a shrewd investment but would be nice if the shareholders were party to the same information so they can make a judgement on the worthiness of continuing as an investor. Better times ahead but a lot of work to be done in the next few years.
AAM Price at posting:
2.4¢ Sentiment: Hold Disclosure: Not Held
