AVQ (ASX) Sumitomo and contempt of court

Originally posted by Io ↑

Actually its IO, as in a moon of Jupiter. If you don't like my posts about AVQ don't read them. If you noticed some of the other stocks I follow you will probably realise its highly unlikely I am an employee of Sumitomo. I follow this story as its interesting and one of things things that makes it interesting are the rampers who despite all the evidence and having a MD costing the company a fortune and delivering little, still go into bat big time. The facts are AVQ under RM's guidance spent $12-15M on Kolosori, a tenement AVQ ultimately did not have proper title to. As a consequence AVQ swapped attention to San Jorge and they look like defining a mineral resource around 1% Ni which is not going to be economic from a direct shipment perspective. Then there was all the money spent on the court case and on salaries and admin. That is money that did not go into the ground nor progress the project. Also, AVQ has had two major announcements and/or capital raising documents pulled by ASX/ASIC. Not great management when your MD is costing $1M or so a year. Surely you expect better performance than that?

AVQ should be looking hard into ways of increasing the grade of material they are planning on shipping. Is there some cheap way of throwing out the low grade nickel and upgrading the product such that they can ship 2-3% Ni? Maybe some form of physical sorting and/or washing? Something that does not require much power and has low CAPEX. Without that the project will not be economic in my opinion. In a forum such as HC I am entitled to express my views as much as anyone else, irrespective as to whether I own shares or not. You don't have to agree with me and nor do I have to agree with you. That is the nature of this forum and what makes it useful. An exchange of ideas.

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Interesting you mention upgrading the the ore. This was something that was mentioned in a detailed report done for the SIG on the Inco Kaiser drilling and given to those that were interested in tendering for the nickel back in 2007. It was mentioned a simple low cost screening process could be used to increase the grades. I have seen a copy of the report and have always wondered why this upgrading of the nickel has not been discussed before. I would be interested in any geo or more knowledgeable person than I (not hard) thoughts on this screening process and it`s feasability.
Cheers,
dig