The important positive here is that ORS are debt free and the assets are unencumbered. I presents opportunities if they fall short again operationally from a recapitalizing perspective. Value, is however, undoubtedly being destroyed.
With 130m of development to achieve in the current Q before they start digging gold bearing ore again (from the 1080 development drive) I think that it will be a tight thing on the cash status.
All depends on whether 3g/t is the reality for the deposit or there is something else going on that can be figured out and corrected in the short term.
Sydneysider does make a lot of sense however that all the other proximate reefs were higher grade historically and it would be incredibly bad luck if ORS had discovered an anomolously low grade reef... but I guess these things can happen in mining.
Markets are turning pear shaped (not gold at this point) and it wouldn't be much fun trying to raise funds in a bear market correction (if it turns out that way) if your operations are not running smoothly.
Cheers
John
ORS Price at posting:
3.1¢ Sentiment: None Disclosure: Held
