I'm thinking the cash could be better spent around prom hill. Doolgunna and surrounds appear to be smaller higher grade deposits and would require serious drilling and further discovery to even establish reserves to justify a 10y op at 50kt/annum. 100k would require multiple sources and further major discovery. Conductor whatever was found by pure luck and due to that SFR are now certain there are many repeats. I'm not sure how far luck can take SFR since management leave a lot to be desired.
With the immediate to mid term future being uncertain for base metals(china and stockpiles),500m is way too much for doolgunna given the current environment. It would cost closer to 1 billion once all is said and done to bring into production...how much did prom hill cost all up????
One would hope they would have learnt from avebury. They could have had it for 50m not 1 billion if they waited two years.
I say hold on to the cash for now and seriously explore around PH.
OZL Price at posting:
$10.45 Sentiment: LT Buy Disclosure: Held
