Its all explained in various company reports why the traditional JORC method was not used.
The fact that that the JORC rout was not being taken is why I bought in.
Less than 10,000 tonnes of trial mining ore
produced in excess of 3000+ oz of gold worth $4,000,000 +,
dug from surface,
taking targeted random samples in various grade areas, the length of the ore body, in a leisurely fashion.
This is money existing share holders did not have to cough up, that went towards progression to mining.
Actual production should be about twice the above per month, if 60,000k oz are averaged over 9 months, allowing for wet season.
The cost of converting to JORC would be an expense and mean further delay for investors with a high cost attached.
Taking a staged trial mining approach with each stage trying to pay for the next and proving the resource, via mining the actual ore , would tell the story while not being a cost (or at least as big a cost as it turned out).
As opposed to proving JORC making a guestimate from lots of drill samples that would be hit and miss due the nature of the ore body unless a lot of holes are drilled to average out the math, which would also be at a higher price and a very big cost in order to convert to a JORC, while producing no offsetting profit.
= limiting the need for more and more capital raising, = not as big a trap as most mining companies who constantly come back cap in hand, due to high cash burn rate.
A certain amount of drilling was done though-out last year, to facilitate good mine design, so as to not sterilize areas of high gold bearing ore.
This under the radar approach, I say under the radar because certain investors probably have constraints in things like no JORC not allowed to invest, share price under $1 not allowed to invest.
ABU will come out from under the radar and start to get noticed big time, with proven staged production a healthy profit and good bank balance due to mining, plus lots of tax free production due to expenditure getting this far and a long mine life.
This approach I believe better suites long term investors and its the approach we bought into.
In the very near future, people who needed to see the t's crossed and i's dotted will be asking where did this company ABM come from.
ABM have minors mining and mining fabrication people commissioning, plus experienced staff hired.
The home work has been done my ABM but not in the traditional way, that would cross the t's and dot the i's for the academics. Your loss our gain.
The plan is 60k oz 1st full year production, next stage as stated is 100k oz or more but growing from profit.
Now isn't that a novelty.
Yes the US gold price is down, but our gold is priced in $AU and hasn't come down much at all, its in a trading range due to the exchange rate and our being a producer country.
Yes we had expenses over and above trial mining profit getting here, but we are here!
Two weeks time we will be listening to the sweet sound of plant rolling with a lower grade commissioning run, followed by a commissioning run gold pour, three months after that the full production fine tuning run, three months after that proven consecutive gold pours.
= proven profit that can be averaged over the year x gold sector P/E ratio = shiny big new market cap
divided by shares on issue = a very much better share price.
Then onto increasing production, but from profit.
Then onto mining Buccaneer, but from profit.
To quote a famous man, "I have a dream", that one day all investors will own a company that intends to grow from organic profit, achieves debt free growth and has the resources and profit to do it.
Look back through Tanami Gold and ABM company reports for the last three four years, there is a wealth of information and facts re the proven plant, the land the work done so far, the company resources and intent.
Plus no debt, no hedging.
Any one wanting to truly invest and buy in right now should be glad gold is getting a bad rap due to the US price, after all don't you want to buy in cheap.
The big predatory sharks are circling Aussie gold companies for a reason right now, you can get in a head of them or you can follow the sheep and worry about a US rate hike causing more bad press for the gold sector.
Any US interest rate hike is going to start flush borrowed money out of US stock market and cause a US stock market desertion, taper tantrum else inflation if the market goes up.
Jannet Yellen was only last week trying to say the US equities are a little exuberant, because she knows what will happen when she pulls the interest rate trigger, she is trying to prime US stocks for a gradual exodus to limit the crash of stop loss down spiral.
A stock market crash is good for gold, inflation is good for gold.
The gamble that QU was will come home to roost with a rate hike, but there are no more bullets left in the armoury for a QE4.
What will happen with a US bond's sell off?
a US currency crisis!
I think that the big gamble is to have no exposure to physical gold and or gold minors right now.
Ask yourself why? the big end of town are buying up gold minors right now.
My 2c
ABU Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
(20min delay)