Not quite. They had $536k at end December with a planned spend of $165k for this March qtr. Given that the March qtr is nearly over and all that cash is likely spent (and IMO more will have been spent than stated based on previous qtrs), this is extra cash burn when the likely cash reserves will be around $300k today plus budgeted outflows of $160k-$250k this June qtr.
IMO he's taking a massive gamble on this resource estimate in the hope that there's some amount of reportable gold in the ground. That way he can lure new cash from investors with the promise of an impending resource statement; or he can try to pump the SP based on the estimate and raise immediately after. I don't think the latter would work and the former will be way harder than it sounds based on the reported drill data. He really has no choice but to throw all remaining cash at this estimate. If it works, it'll enable him to raise a small amount of cash to keep things running. If the estimate is poor, well, game over IMO.
There will likely be a massively dilutive CR at 0.001 or 0.002 in the coming 1-2mths regardless of the outcome.
AYR Price at posting:
0.3¢ Sentiment: None Disclosure: Not Held
