In my opinion there is a key argument that can be derived from the latest operational PR. If you take the most conservative speculation of recovery estimates posted on this board from a single operational dredge, cut that number in half (startup pains and unanticipated problems) and the estimated gross revenue potential from free gold alone is impressive for any Jr. Mining Company initially starting up. Expansion and recovery optimization will happen over time regardless but the production values from one single dredge are more than adequate to support current operational costs, and they are in production. With the funding the company has secured, once over the filings hump and CE has been removed they should be able to rapidly expand operations.
My interpretation is the company may be further along than suspected. Dredging operations on the river could be halted as early as mid July from rising water levels; this is only 1 ½ to 2 months out! The PR clearly states they are currently putting together a processing facility and will start recovery operations in the off-season.
In this time frame any new equipment, even if only for free gold separation to be mobilized, set up and operational is unrealistic unless already in transit or is being sourced locally. I don’t believe Management would risk damaging investor confidence any more than it already has with false statements. Retail investment may be a small part of the equation but it is an essential one nonetheless.
Excerpt from 05/24/11 PR - Updating Current Dredging Operations
"It is great to be in operation on the Pampana and to have our testing from the past 2 years begin to bear fruit. We are putting a secure processing facility together near our operations. This is where we bring the recovered concentrates. This is also where we will be setting up our recovery operation which will start up once the operating season is over. In the meantime, we are dedicated to producing as much black sand concentrate as possible during the operating season. We are also working on a land based operating plan to keep operations going during the winter season."
Excerpt from Sunergy Web Site: AMS Concession Report “September 2010”
“The climate is a wet tropical monsoon, with a single wet season each year. The average annual rainfall is about 2,500 centimeters. The greater part of this rain falls in the wet season, from mid-May to mid-November. The wettest month is usually August, but rivers attain maximum discharge at their lowest in March and April, and begin to increase in May. Ground water levels do not rise significantly until late July.”
One other item that seems to have lost focus is their planned immediate mobilization of the smaller existing dredge units acquired from the Allied acquisition into Ghana.
AI
