If anyone thinks they are going to make money out of this, then it is highly likely you are wrong . They use a sophisticated money-acquiring system. it is multi-faceted, in how they extract monies from different sources. That is by far the most impressive aspect of CLZ. After watching these mining companies for 40 years, it is obvious they are fully extended financially now . They need to pull another financial trick . But this almost certainly excludes on-market capital raisings . because there are 1.6 billion shares cued up to sell at a tenth of a cent. The market is exhausted. Good news does not move the stock now. There are so many cued up to get out, this stock running, is highly unlikely.
So what they need is a groundbreaking announcement. They are using play equipment, it is not really serious mining equipment . So they are going to scale up the Gekko. I would be most concerned about the cost of diesel fuel, which will be used to crush quartz, in order to liberate the gold, which won't be more than 70 percent efficient. Dean said they won't be using cyanide.
Ok , by the end of the year, they MIGHT be crushing. Dean said he wants to initially do a trial mine. I believe this is to see if the whole operation is economic . Unless they can get more money off the market, the trail will need to be self-funding.
It wasn't long ago they were going to heap leach the rom pads. After all they paid to have the ore dumped there, surely that cost a couple of mills.So why the change of plan?
Before buying in again, it would be wise to wait for the stunning announcement.
most went in here, due to the stunning spasmodic grades, but it needs to be uniform, else it is guesswork if it is profitable. Really it's about how much ore, has to be moved to access that high-grade quartz reef pocket, Moving 4 meters of ore is still a lot of ore. Personally, I wouldn't expect this to generate anything for 12 months. The biggest problem is the failure to prove the deposit up past 92,000OZ. The mining department is not very interested in approving a huge scar in the land if it's not going to be income-generating so that rehabilitation can be provisioned for . Dean openly admits he doesn't know if Kat Gap is economic .
My biggest criticism, is they haven't defined a mining plan . What are they going to do, move the equipment elsewhere?
That is the strongest argument with where they are now, is they don't have a clearly defined path to make money, it's still a big maybe . it is impressive what they have assembled at Kat Gap, but they still have not made a cent yet, and they won't be for at least 6 months
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