I've been taking a closer look at SSC and its story is still...

I've been taking a closer look at SSC and its story is still looking good. We have a high grade zinc/copper/lead deposit (with a bit of silver) that is both easy to mine and mill. We have a 5 yr life of mine with $8m start up and payback in 10 months. Provided Directors keep the costs down we should be able to get back to 4.5 cents sp of the past

There is something that has gone somewhat wrong in the approval process as this was to be completed Dec 09. SSC now say 2nd QTR 10.and i'm not seeing that as realistic given that they are still doing studies and have yet to get to stage 3 of the process. I suspect that the necessary studies were very undercooked originally. If there is a problem I think its having a WA company trying to do stuff in NSW by remote control. They need hands on management to direct/control the consultants on the ground. Maybe they have it all covered but the evidence so far says otherwise.

The approval process for Peelwood is 3 stage. 1st the NSW Dept of planning(or Industry) has to be convinced in terms of Flora and Fauna, heritage, site issues and gosh knows what.. Next we go to Upper Lachlan Shire Council for a full DA. which includes EIS and mine construction plans. IF the council likes it it then goes to NSW Joint Regional Planning Panel (JRPP). Now, a search of council minutes on the WEB discloses no application by Sultan. certainly has NOT got there or JRPP as it does not come up as a development to be assessed on their website either.

So we seem to be somewhere at the end of stage 1 only.

But,I cannot see any environmental stuff stopping this. Its an old mine site on one farmers land who has royalty rights over production.
Its in a low pop density area so less people to get upset.

The 5 year life will be extended from other deposits that SSC has locally. I have banged on a bit recently and in the past about water. It is obviously only being addressed now. I'm guessing that they are looking at pumping ground water and hence the latest testing and assessment.But it should not be a show stopper.


Other stuff:
Montenegro...I hope its not just a distraction from the main game. one or two of the directors surnames would seem to give them some entree into the region. but getting exclusive rights to negotiate does seem dodgey to me. The govt like all govt will want as much as it can get for the concession, or is it someone? SSC have stated that they can pay for Montenegro from "existing reserves" ...that cannot be much. It does not sound right to me but what would i know, and I certainly hope it comes off. Its another zinc/lead mine and will have a bit of blue sky somewhere for us shareholders. As long as its not just so we shareholders can pay for the directors trips abroard.

Good gold grades have been found on nearby EL (Isabella, 30kms from Peelwood)) that could conceivably be processed (if commercial) in the same mill after the zinc runs out. There would be no money atm to continue work on this EL but it is there as a excellent prospect.

current shares on issue 888m with $1m cash. They have very modest commitments for this qtr. but its hard to see SSC not going for more money sometime soon. I hope its after Peelwood approval when we maybe see 3-4c sp. After GM directors are back to having the ability to sell 15% of total shares again without approval. Montenegro go ahead would also liven things up.

Unfortunately I do see sp slipping due to the continuing delays. I'm betting on 3rd qtr. approval date for Peelwood and i'm putting nothing on Montenegro. SSC knows about failure having peed away US$.5m to a dodgey consultant last year and an aborted phosphate venture. Lets hope they have learned a lesson or two.