some of BM Companies don’t go teats up because they run out of ore; they collapse because they lose control of their finances. When Novo was doing normal exploration on the three major projects, they were burning through about $1.5 million a month. Putting the mill into production and paying for the mining has jacked up the burn rate to $12 million a month just for mining and milling.
The QP who did the PFS recommended Novo do 20X20 infill drilling for grade control. As they got into production they realized they were diluting the grade because of a lack of precise grade control. When they talked to the QP he said to tighten the drill spacing a lot. It would be very foolish to ignore his advice.
The primary purpose of the PP is keeping a decent cash balance. The secondary purpose is to comply with wise advice from the QP on the drilling. There is also another issue that should be discussed. Working in WA during their summer/our winter is tough. When WA goes through the cyclone season as it just finished, literally you can’t work at all. Nullagine was flooded well into actual production in February.