Firering Strategic Minerals: From explorer to producer. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
This is what happens when you don't find the exploration side of a mine. First mistake is too save money on drill spacing while outlining the deposit. This is NOT the fault of the geologists that work within the budget set out by the board. Saving money on initial drilling leads to this sort of thing especially in a nuggety narrow gold veins.
Second mistake pay senior geologists enough to retain them. If you do not do this the turn over in your team of geologists is too high. This leads to a lack of database and deposit knowledge which fragments your deposit understanding and predictably your mine design and ultimately your grade control.
It happens worldwide in these types of small operations and is a huge EARLY red flag to any investors.
Whoever came up with the nonsense figures presented in Edinburgh - the geologists and/or PD - it wasn't TB. Nor any of the other figures presented to us that were seemingly concocted on Fantasy Island. An unpleasant fellow, and significantly poorer, but he's free to post what he likes within the law.
What does the reiteration from the brokers that's just appeared mean? Does anyone know what they value the stock at?
A groat? £10?
'This is what happens when you don't find the exploration side of a mine.'
Maybenot, there is a 'mountain' of geo-data with SG. See the original JORC report of Snowden from June 2008 and the final Cononish Development Study of March 2012 where fig. ES.2 shows the drill data and ore-blocks, or would you like to turn the mountain into a pin-cushion?
The problem is not the geology or grades in situ, but the organization of mining. The Bara BFS of July 2015 indicated the need of 2 development faces, one LHS in preparation and one LHS in production to achieve P1 production and twice those for P2. Just now we appear to have just one development and one LHS in progress. Stope mining technology has not progressed that much in 8 years, so little wonder we are not consistently achieving mining targets.
You may have a point about retention of geologists in the last 11 years with little continuity, but ironically this has added breadth of new initiatives and techniques to the geo-data store since 2016.
By the way, the Cononish vein is not 'nuggety.' It is not like Alba's Clogau mine in Wales.
The above IMO and from two mine visits in 2016 and 2017.
Let's hope things get better.........jam tomorrow for Baz!
Regards all, R.
''.jam tomorrow for Baz! '' RH, I thought that Maybenot post would attract your attention. As you know Connonish hes been drilled to death and no a wee nugget to be found just the flour gold.I agree it is down to poor management. If they had had the correct amount of money at the start and people who knew what they were about then Cononish would have been a gold mine. tut tut.Instead they have played catch up.
So some of y'all think the company might be around long enough and have the effrontery to have yet another cash raise via a placing? If it's at 7p then that's a 99% loss the company will have overseen. Way to go, guys. Way to go!
The company should be tapping the Scottish government for help and using any contacts with proper gold mining companies to try to secure some funding while the price is so low. Mind you, who would believe anything Scotgold told them? Wasn't the drill rig critical? How often were we promised Phase 2 would get going? How often were we told that serious exploration work would get under way?
As well as the name of the third party company the other omission is by when their work is expected to be complete.
Maybe tb is camping out like a boy scout counting lorries as they exit the mine. Still, as long as he's sleeping well on his investment.
''The company should be tapping the Scottish government for help '' They should change their name to Connonish Ferrybuilder and they will get millions.
They should just make better decisions and long term plans with effective management and accounting instead of become subsidy junkies
Long term plans cost money which they do not have and have lost all goodwill to raise any worthwhile amount. IMO the jig is up and SG will go into liquidation. If somebody with deep pockets buys it for a quid and no debt then it should make money. Cononish is not a hard place to mine.The above scenario means a total loss for all previous investors.Such is life, tis a hard world.
Disturbingly, that might be the most likely scenario bbb.
On the other hand are the directors the type of guys who will just shrug their shoulders and let it happen after what they themselves have invested?
https://www.scotgoldresources.com/investors/capital-structure/
I can imagine they are calling for the heads, quite rightly, of the people who came up with and signed off on ridiculous projections.
Only they will know whether they are game for any more.
"They should just make better decisions and long term plans with effective management and accounting..." That's what we were led to believe we were getting when PD took over. LOL. Presumably even NLR trusted that's what we'd be getting when he handed over the chairmanship to "releasing what we're comfortable sharing at this moment" Hetherington. What a fine job the latter has done with his guiding hand on the tiller. (Bug again, who was giving him nonsensical data?)
If only we had an inside line to the goings on in the mine. lol
''On the other hand are the directors the type of guys who will just shrug their shoulders ?''. No but they might be the guys with the deep pockets who buy the ashes of SG for a pittance and start again.They did not become wealthy by being stupid.
Indeed Baz, it could go the way of Dalradian, but the BoD an a few significant investors have a lot of skin in the game to let it go tits up. Odds anyone on new funding, go private or takeover? Maybe that's why they need a 'review' to twist someone's arm?
ATB, R.
But what data would those with a lot of skin in the game be basing their decisions on?
Apart from apart from our costs and our constantly abysmal cash position who can trust any of the figures Scotgold announces?
£200 million. £300 million $1 billion. LOL! And "obscene" grades. Phase 2. Exploration work. France and Spain. (Remember them?) Plus what they were not comfortable sharing at the AGM. Plus all the other nonsense data presented in Edinburgh and elsewhere.
Thus far we've got a minuscule uptick for the last three months. Whoopee.
Or at least: we're TOLD there's been an uptick.....
It’s peculiar how much faith is put in these directors. I doubt it’s some master plan they have and I also think this board gives them too much credit. Almost as if it’s impossible they would do something stupid or end up in this position. But they have. Those very directors have led us to this. So if they are really smart and won’t loose a lot of money… why are we here.
The master plan was to make loadsa money, it didn't happen. Nat king Cole must be sorry he ever came across this place.However all is not lost if the gold is actually there.It's not outer Mongolia and with the capital put in it should pay off.But not for us mere mortals. Will there be another mine?. I really don't see it.
Not even enough money to square away bond payments on this mine to make good any damage with the environment agency.
This from the RNS on 15th May:
Further Scottish gold doré sales were made to Scottish jewellery companies, totalling £183,478, from 1 January 2023 to 4 May 2023.
This from the RNS on 10th July:
Scottish gold doré sales made to Scottish jewellery companies during H1 2023 totalled £183,478.
Therefore it looks like a gold mining company based in Scotland sold precisely no Scottish gold between 4th May and 30th June.
None! Was that in line with projections? LOL.
Regarding this from the RNS on 21st April:
The Company has entered into a subscription agreement with Maurice and Nicole Mason, existing shareholders, pursuant to which they have subscribed directly with the Company for an aggregate of 3,333,333 Ordinary Shares in the Company (the "Subscription Shares") at the Issue Price (the "Subscription") to raise gross proceeds of £0.5 million. The Subscription is conditional upon Admission of the Subscription Shares.
Maurice and Nicole Mason have also undertaken to the Company to subscribe for an aggregate of 3,333,333 Open Offer Shares, equivalent to c. £0.5 million, in the Open Offer under the Basic and the Excess Application Facility.
- I can only see three possibilities:
1. They are dismayed as everyone else and were given incorrect information. Was the information on which they based their decision to invest given to them by people who knew the data to be incorrect and therefore was criminality involved? Will that one day be for a jury to decide??
2. There is a Plan B that the big boys are working on but it doesn't involve us.
3. It will eventually come good. LOL. Given the tone of all recent announcements I can't see this being likely. But I'm not entirely convinced by 1 or 2 either.
Thoughts gentlemen? Evidence?
It seems that someone or LSE didn't appreciate my suggestion that those who involved in bringing Scotgold to where it sits today have their actions here follow them for the rest of their would-be careers. Lol.
You are right about poor mine management.
But all Dalraidian gold veins are 'nuggety'. Nuggety gold does not mean their are gold nuggets present it means that the distribution of visible and microscopic gold is uneven through the vein. This has a direct impact on the amount of drilling required to be sure of the resource. Ideally drill spacing in narrow nuggety vein deposits is 25m or less.
It's definitely a bit too late for that now, all I'm saying is it has contributed greatly too the situation they now find themselves in, which is a large hole with no nuggets, expect the management team.
consultancy review might not be needed with the share price rapidly turning to ****e 🥳🥳🥳
TB REVEAL yourself. …. Couldn’t help myself.
Maybe, Slacker, we small PIs could come out of this with a ha'penny in the pound if the Scottish Government would nationalise SGZ, LOL. After all, they have proved spectacularly inept at running everything else, so why not add a gold mine to their portfolio?
Maybenot,
I won't argue over what one might regard as 'nuggety' but It is (IMO) a potentially misleading term. Suffice that the Cononish vein is a quartz breccia (fragments) that contains fine gold and other minerals, mostly between the quartz and some within it.
Your comment re drill spacing is well made and ideal, however having the finance available to turn the mountain into a pin-cushion is another thing. Interestingly, while much of the vein was covered by drill intersections and hence ore-blocks of 50 to 100m size, a part was drilled at 10 to 30m blocks that showed as much variation as over the rest of the vein of larger blocks, suggesting that being obvious, it was known. (Scotgold Final Cononish Development Study 30-04-13). Hence, weighted averaging of all the blocks came up with a good mine grade (11 to 12 gAu/t) overall. The only option then is to mine out the lot, accept the likely variability above cut-off grade and hope that you end up with the same average grade. This still makes the vein very attractive to mine, but how you mine it is another matter and SG have failed to get it right and deliver the tonnage.
The controversy over the 'revelation' of a nearby 'second vein' is amusing, since there are several! They were first detected in soil surveys done by previous owners. A couple of splays off the main vein adit were excavated for a few metres and a few others drilled, but none showed great potential. Decades later, a couple of years ago, SG's ion-leach soil testing around Cononish confirmed these and others nearby, but none have been tested AFAIK.
Memories are short for some. I'm just showing my age! LoL!
Regards R.
Nothing goes in a straight line, cash flow is everything
Draw a line below which the company should not fall, to get a fair value, then in times of plenty invest in plant and people.for the long term
I believe the infrastructure is in place and will bear fruit
As a gambler my longest losing streak was 8 moths, then I had my biggest ever win, as a gambler the only thing you are 8n control of is your losses
Looks like someone baled out yesterday morning selling 671,168 shares at 12p.
That's a massive hit someone took but it explains the severity of yesterday's drop.
Might it even have been TB giving up the ghost and his vacuum cleaner regurgitating?
8 months, Duncandisorderly? This has been on a continuous losing streak for well over 8 years.
Don't look at such narrow timeframes, Blakeney. This time next century we are all going to be millionaires! Patience is the key!