This may explain why we had a delay with production ramp up thus far (and I'm not excusing Mark Lynch for making wild production forecasts in the past within improbable time frames).
The Western Decline at Warrior is the main game as we know. It will incorporate Imperial(which is another Warrior - i.e. same size as Warrior and same East/ West reef style) and the smaller Sons of Freedom. It is the way to go and makes perfect sense.
But originally the only area that was explored, historically etc.. and that CTO had knowledge of was the area East. Hence (unfortunately) the Eastern Decline was originally started.
Subsequent drilling showed the area West was endowed with gold and Warrior went from a 40,000 oz/annum to a planned 100,000 oz/annum mine.
So switching the focus to the Western Decline was like an aircraft carrier making a 180 degree turn - it takes time. Development takes time, refocussing West takes time and so allowing for this,a lot has been achieved I reckon at the Western decline - especially given that CTO is walking a tightrope cash wise.
But this is why I think things may change going forward and I'm feeling optimistic.
1. the recent power upgrade.
2. There's 140 people working feverishly right now mostly Developing and producing(a little) underground at the mine site - we only have 2 people in the central office. We are indeed developing ahead of production - those 140 people aren't twiddling their thumbs.
3. I think the SPP will be a success... especially given the recent share price.
By the way development East hasn't been a waste - CTO had a recent announcement that an adjoining tenement East of Warrior has been granted a mining licence. So the Eastern Decline can extend out another 1.5 kms now - as Warrior remains open to the East and we now access another 1.5 kms of strike at Warrior East.
CTO Price at posting:
18.5¢ Sentiment: LT Buy Disclosure: Held
