Why?
Yes share price is very low but do what is appropriate to protect share price and investor's value.
Consolidation is an admission imo of management that they have lost control of managing the company.
It only serves the managment to continue on the same path.

They are not entirely to blame, the world economy has a lot to do with it. But why consolidate now? Consolidate when circumstances are more favourable, I mean world economy wise.

If we consolidate now the sp will go from 2 to 40 cents (20:1) but I expect that soon after that it will drop to 20 cents and probably stay in that range. That is protecting investor's value? Nothing of the kind.

The company has a good gold resource and sooner or later precious metals are sure to return to proper valueations and for a time well above. That is the time to consolidate if absolutely needed.