I have spoken to the company and can reveal the following:
It is highly unlikely that a new CEO will be appointed in the short term future
SBR is choosing to conserve its cash burn rate instead to enable the money to be spent in the ground
The Geo's seem very confident and would prefer 3-4 drill rigs on Guchab however as the small cap market is down and raising money is difficult Management have chosen to stay with the current scenario for the time being which will enable the company to go for another 18 months before needing additional funds.
They also seem very confident that this is all part of a much bigger system
They may not continue with the company owned rig arrangement as it may be more cost effective to utilise their existing drilling contractor for the second rig.
The orebody is difficult to predict however they seem to be getting much better at predictive modelling and working out the jigsaw puzzle.
Its still a bit to early to enter formal MOA or MOU's with either Dundee or Kombat but there has been plenty of discussion. Dundee's expansion which is over 60% complete will be hungry for concentrate so there is a high confidence that a deal could be done. Additionally, Dundee could be a potential purchaser should they wish to control copper in the region.
If modelling is correct we should start to see increasing grades as we proceeed.
Overall there still seems to be a high degree of confidence that they will indeed discover a viable mine/mines
Where to from here:
Conserve cash will keeping two rigs turning Continue to consistently produce results Wait for market to take notice.
SBR Price at posting:
4.1¢ Sentiment: LT Buy Disclosure: Held
