Failure to reconcile grades on 1100 Level at Union Hill is a significant black mark. Management claims that the issue can be addressed by sorting of broken ore feedstock to bring grades back up to around 6 g/t au. They are saying that tonnages of economic ore are increasing from the 1100 Level that is being assisted by additional trucking equipment and addition of miners.
They can commence production from London Hill which is permitted and ready for open pit operations to boost gold production and revenue. I think they were planning to ship 3,500 - 4,000 tonnes per month at around 3-4 g/t au for additional 338 - 516 ounces per month / 1,014 - 1,548 per quarter of gold valued at A$1.4 - $2.13 million.
IMHO the market has overreacted to this news and represents a buying opportunity.
ORS Price at posting:
3.6¢ Sentiment: Buy Disclosure: Held
