JTLP,
The main problem was always going to be to satisfy the JORC Standards for measuring an alluvial resource.
There has to be enough confidence to say there is an approximate amount of resource over a certain size area after samples have been taken from the testpits.
Its not that they don't have a decent resource.
Its because they must qualify to meet the criteria.
An alluvial deposit is not like ordinary Gold Mining where you drill holes at various intervals to identify a size and location of a reef.
There is no uniformity with alluvials.
One test pit shows up alot of Gold Samples.
The next one may not.
OK with the 16,000ozs, it is a conservative amount to satisfy the Jorc Code that they do have a resource over a certain area. From there it will increase as they mine and become producers and explorers at the same time.
However, they had to pass the first test which was why they had to get it audited in the first place. Its all part of the process.
Regarding the nuggets, they could not be included as part of the Jorc Resource because of the nature of what they are. There is no distance that a nugget is spread out over. Its all random. Great you find a nugget and add it to the total production. They will be sold along with the rest at market.
As the production commences, i am confident we will be seeing announcements along the way of good size nuggets found.
Its a known area for finding them.
Overall, they will bring in cash as more and more Gold is found.
As simple as that.
It should not be seen as a big issue.
Just helps us along the way in exploration of their other assets which are far more important IMHO.
Cheers markcoinoz