RE: RE: RE: RE:RE: RE: Dilution they liedHi fellow Naggers
Remember from last year when Nag first started this venture?
Here's a excerpt from the Oct 7th 2009 news;
NAG expects to have a monthly coal production level of approximately 10,000 net tons, given each auger can produce 4,000-6,000 net tons per month. The production rate and mine-life projections have been made without support of a feasibility study, there is no certainty the proposed operations will be economically viable.
In a nutshell Nag needed mine#1 to be very profitable to prevent any further dilution. It seems that since it did not produce as expected and hence more PP's were necc to further fund the companies projects.
This may have been the reason NAG had drilled the other leased properties first in order to get a better idea of what coal reserves they contain.
Lets hope Mines 2 and 3 will not disappoint. Still not without risk and the current SP reflects just that. We still need good production numbers before we move up.
GLTA
Wallywill