These 'old pits' are not deep and very risky to mine if management know what they are doing. Mark Creasy knew what he was doing as the founder of BW...and Creasy has bought $500k in Echo this year. So clearly Creasy has confidence that mangement are not mugs like the Navigator ones. I assume you don't think Mark Creasy is also 'stupid'?
Navigator resources problem was not the deposit. Navigator Resources issue was management having absolutely no clue what they were doing (though pretending to). I never held Navigator yet it had the same assets that EAR now has. I criticised Navigator several times on HC for, amongst other things:
1. Pathetic, or should I say virtually non-existent grade control
2. Horrible working capital management. WCM is probably the number one killer for mining companies in production
Yet despite all this, I haev invested heavily into Echo...I kinda think I know what I'm doing thanks, expecially after 20 years of investing in junior mining companies very successfully.
Having said that, even the idiots at Navigator could have survived today (after they got their 2012 lifeline from some os firm who probably should have known better), but unfortunately, here is the AUD gold price chart for the last 10 years. As can be seen, AUD gold price at time of admin (in 2013) had dropped as much as $550(!!!) from Nov 2011. Too bad Navigator had deemed the future all rosy and good times and not planned for that...ie more sensible production plan with grade control to derisk against AUD POG collapse, proper working capital management not complete over capitalisation (which is great for EAR since we have a bunch of 'spare' brand new equipment never used for absolutely free).
