See Appendix 3B from 23rd Dec 2009 - looks to me like they drew down 800k shares, and at a fairly good price of 8.6c per share, from the Fortrend Working Capital facility.
The mining studies are good - they demonstrate viable mining operations at all of their deposits and the ability to generate strong positive cashflows (>$20m) - but given that the capex requirements would be reasonably signficant I'm not too sure they should be rushing into mining it yet.
To me the big positive benefits of the mining studies are:
* they underline the value of these gold deposits and can also be easily updated if we see the gold bull take hold again * any good drill results in the upcoming Bundarra drill program will have added meaning because they are now not just random drill results, but are material extensions to economically mineable resources
I'm happy with the steady approach - I'd prefer not to see too much dilution at this stage to get mining, and would rather they build up the resource to make the numbers truly mouth watering while they have a small market cap.
So what we need now imo is for the Bundarra drilling program to start, and to return some nice results, similar to the sorts of things they got in their last Bundarra program. A new discovery near the Craig anomoly would be nice too. The gold price going back into overdrive would have a very positive impact esp. if coincident with some nice results from Bundarra.
TMX Price at posting:
5.6¢ Sentiment: LT Buy Disclosure: Held
