Purpose of this post is to assist HC users to understand the significance and purpose of the CR. First of all - congratulations to Campbell for his talk of BRR today - very well done IMO. He stated: "next, 2,3,4 years will see them expand towards their goal" as stated in CR release.
I went to a great deal of trouble to study greater Coolgardie as it is the engine room for FML. Chuck took me to all the pits, down the mines (I have samples on my desk of beautiful ore and samples from TI etc) and over the whole field one of the days I was there and it opened my eyes further to this opportunity.
To the north of Tindals (and far south) they have massive opportunity to open up. Drill results are blow out, so many new pits to open up and new U/G opportunities close to the mill = high grade feed for a larger production base.
Norris is an old pit (far south) near a couple of other shallow pits and this is one big pit opportunity with further drilling - who knows when they might have gotten to this opportunity with so many other priorities. The ore continues into the pit wall it is visible - again many fantastic drill results down there warrant exploration prior to development. I chose my words carefully in the recent GoldOz report on this area.
The Mount - to 60k oz by H2 - are you kidding me! This is fantastic news this is aggressive - isn't that what you all want??? This is high grade ore supply leaping forward in the mine plan ...and those 50k oz quarters just got a whole lot closer from this CR.
I recently toured LCowan also in detail with Chuck, Don and Dean and saw these maps and EM charts. The tip of the iceberg is currently visible on TI and yet this tip is large. I chipped off deeply stained quartz and saw gold at surface at Black Dog and Blind Pew.
All the chips were at surface outcrop and average about 20 - 30 gpt. Even the 100kg sample graded at this level and Dean chose this as a truly representative sample - not selective - he didn't want to fool himself he is a scientist.
Pinto your elephant is getting drilled right now IMO - based on what I saw with my own eyes. Based on the detailed analysis carefully explained to me by two super geo's with considerable track record - indisputable. Again I chose my words in the report very carefully and down played the upside potential as I did not want to sound like a nut job. It does have to be proven - but it walks like a duck, quacks like a duck...
It was going to be gradual a growth story for FML and the shareholders, funded by cash flow however now it will be accelerated big time - a TURBO BOOST. All thanks to the CR what a great move - well done management they are seizing the opportunity.
This gold bull will not last forever. Imagine you have a great business and are making excellent returns, but the time line is limited to the next 5-10 years before the opportunity is gone. Your growth profile is great and assured however it is restrained - but only hampered by cash flow.
However for a mere 15% dilution you can grow the business by 2 or 3 times in a much shorter time frame. The restraints would be taken off your business for it to reach its full potential for you and your family - for your shareholders. Somebody is standing there ready to back you - would you take the punt??
I leave you with this thought - as CB said in his talk this morning - "this is not the time to be leaving gold in the ground". They are "going for it" and I am extremely pleased. They can dig more of it up for us all now - get it?? I could not be happier with a little dilution to bring forward their opportunity and open it up significantly at this point in history.
This CR was the best thing to happen since they took control of their mill. It is a great move IMO. Now they can become a leading producer in the goldfields.
DYOR CW
PS I am fortunate to do what I do - in these cases I am able to gain insight that only very close examination can provide. I share a portion of this for you, to believe or not, for free today.
PPS - they did say exploration AND DEVELOPMENT at TI didn't they - hmmmmm.
FML Price at posting:
8.7¢ Sentiment: LT Buy Disclosure: Held
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