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Southstone Minerals Ltd V.SML

Alternate Symbol(s):  FDGMF

Southstone Minerals Limited is a Canadian junior mining company. The Company is engaged in the acquisition, exploration, evaluation, development and mining of mineral properties. The Company holds a 43% interest in the Oena Diamond Mine (Oena), which is located in the Northern Cape Province, Republic of South Africa that consists of one New Order Mining Lease. Oena is a producing alluvial diamond property. Oena is approximately 8,800 hectares in size and covers a 4.8 kilometers (kms) wide strip along a 15 kms length of the lower Orange River. The property has two separate and distinctly different aged diamondiferous bearing paleochannel gravels: Proto-terraces and Meso-terraces. Its subsidiaries include TGV Resources (Pty) Ltd, African Star Minerals (Pty) Limited and GAH Mining (Pty) Ltd.


TSXV:SML - Post by User

Comment by hempsteron Jun 18, 2019 2:47am
122 Views
Post# 29834417

RE:RE:RE:RE:Q3 Update

RE:RE:RE:RE:Q3 UpdateI fully agree, the Moquita project has tremendous potential, as well as the potential mine in Liberia - not only because of the locations of the properties, but also because the mining sector in these countries is still far less developed than in South Africa.

I also thought about when we might see the first positive quater, but I am not sure if I dare to make a guess when this will happen. Fact is, the cash flow from operating activities etc is already positive, their overall losses are decreasing and their cash holdings are also increasing which are all in all good signs.
However, Tango is responsible for 100% of the operating expenses for the Moquita project, and for the operationg costs of the new additional equipment at Oena (Bluedust 7 is responsible for the costs of the "old" equipment). This does pose some challenges for reaching break even.
If they manage to start full scale production at Moquita during the next few weeks and get some good recoveries, I guess they might even reach break even already sometime around the end of Q1 or Q2 2020.
But I think this guess might be a little too optimistic..
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