The operational profit per oz of $A 538 at 5 g/t is impressive nonetheless and if Dec07 grades been maintained, an annual production rate nearer 30k could have been achieved at even higher profit margin. Tripling the power should triple the ore extraction (maybe even more with increased working hrs).
There are several questions that remain in my mind. Will the two stoping areas currently under development be ready to contribute by end of June when the extra power arrives, and how much capital is needed to do so? How much capital is needed to develop the remaining two stoping areas and is it these last two stopes for which a capital raising is needed? How much money are we talking about to fast-track the last two?
My interpretation from what Garry Foord told me and what is written in the March report, is that five stoping areas are required to maintain steady annual production of ~100k oz, so that's 20k oz per stope. Once the steady state condition is reached, it would be relatively straightforward to maintain production and focus could then turn to Sunburst.
CTO Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
