Sounds like there could be some "exciting findings" that should be announced or pending assay results.
If you take this statement into context with what was said during the exploration segment, perhaps George let something "slip".
What concerns me is that they are going to be taking about 350-400 tons offline from the rice lake complex to concentrate on the development work.
They are hoping to replace that with ore from the Cohiba which is "close" to coming back on line, and from the L13. Not sure which zone was to produce some promising long stopes that will add some high grade ore to the mix, but it sounds like they will not be meeting the tons per day of mining that they have been producing so far in 2012. They are anticipating about 5-10% of the ore in the future to come form these 2 areas.
Less ore but a higher head grade will be needed to reach guidance (lower end).
George mentioned that they will know better in about 2 weeks if it will work out.
I anticipate that us common share holders will not be in the know, and can only know what is happening based on the number of shorts. If the shorts increase, I will assume that they will not make guidance and the share price will be back in the .80 range, just in time for a flow through.
Capex has been increased by about 8 to 12 million so far and will only increase more as the work continues in the 16 and 26 level.
During the Q and A session, one analyst worked on that angle, the cost per ton from the RL mine is about 130 while the cost from the hinge comlex is about 80 per ton. I think this means that the cost per ounce will reflect that in the next Q.
Interesting conference call im my opinion.
I will wait, like I always wait.
There are other opportunities to make money out there, so I will not be adding to my position. I have not added to my position since 2009, while I have sold off enough that I have decreased my risk to zero. I have only profit invested here for now.
Andy
