If that 2.9 million raise were to go towards taking the plant out of care and maintenance and into even a percentage of capacity I'm sure SH sentiment would completely change. Instead of dedicating the cash to drilling more holes.
If we look back to when the project was first acquired by NRU, the only limits were that level 5 and 7 were flooded and there were a few areas of the mine where the walls had encroached or started to fail needing re-enforcing. The resource had been proven at that point and would have been income producing.
I can't speak on the condition of the plant equipment, but i'm sure it wouldn't have been a 2 million dollar cap raise (or 2) away from repair and recommission.
I also think the original prospectus to buy the project had a path to income generation that mentioned the plant, and mine activation first then exploration and sure-up of the resource in the unexplored regions.
At this point, i see no moving forwards. The current drill results, although high grades, are sparatic and wide spread - not enough for me to want to cough up more cash to get a higher definition. If the drilling were taken on as part of an expansion after income generation - im sure half of us would be fine with it.
I only wonder how long it will take Mr Copoulis to work towards a take-over to actualise this resource and its opportunities.
CZL Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held
