What I don''t get, or probably never will!Is that Gold Ridge was a producing Gold Mine once, with what I was led to believe and understood still had a lot of major equipment undamaged and in place. Especially the larger long lead time equipment, like Ball Mills, Grinders, and Generators. The new, unexpected, higher production costs are another story.
In my honest opinion, one of the greatest assets about this company, and stock, was that it was supposed to be able to bring this mine into production "QUICKLY", and at a relatively lot lower cost then having to build a new Gold Mine there. But so far I haven't seen any of this! Am I right or wrong here Folks???
They then later tell us that it will cost C$110M to build this mine and for this mine to be in full production. That is about US$100M. What I still don't get is that I still find this hard to believe that it would cost so much, when most of the major equipment was supposedly there, and for a Gold Mine that will produce only 150,000 oz pa. Especially when I read other things like this.
Sino Gold built from scratch a 180,000 oz pa Gold Mine in China for US$95M, which is about the same as our costs, and is also considered "The Largest Investment in China's Gold Mining Industry by a Foreign Company". This is changing a hill, in the middle on nowhere, to one with camps, equipment, roads, sewer system, and a producing mine. So what gives with SGA in that a lot of this is already there, and perhaps just needs some reworking?
To put things in prospective, I can't lose money on this company now, but at the same time I simply don't trust this company management anymore! My position in this company is only warrants right now, and I don't expect that to change. I think it would be a good thing that we become part of Sino Gold, but at the same time I don't doubt these guys will sell a bunch more shares, keep our Market Capital up, but dilute our share price, before this happens. Just like they did with Golden China Resources.
In my view, a lower share price right now is in their best interest. Keeping news from us is illegal, but sitting on your hands, and doing nothing, is not. I will eat my words if they come out with an expected drilling announcement, that increases our resources by a significant amount, but at the same time I doubt this will happen. I am beginning to wonder if these guys work for Australian Solomons Gold, Golden China Resources, or really Sino Gold and Gold Fields, all along.
LINK
https://www.busrep.co.za/index.php?fArticleId=4026264
GB