I think you could be right accept that I believe there is additional cost of electricity for finer grinding using the ISAmill. But should only be for a small portion of the AMX gold deposit.
The bigger issue is needing to prove up a gold reserve for a 150-200 ounce pa operation to attract institutional support for fund raising. Given that the average grade is 1.6 gms/tonne and assuming that gold recoveries would be say 91% (I do not know what it would actually be), then for a 150k ounce pa operation they would need total milling capacity of 3.2 million tonnes pa. and for 200,000 ounces pa gold production they would need annual milling capacity for 4.2 million tonnes.
That means they would need around $180-240 million for the plant, plus whatever would be required to clear overburden (no idea what that might be, depends on depth and if they have to move any villagers and pay compo).
That is a lot of money for a company capitalised at $110M to raise. In addition they still need to fund the cost of proving up a 1.5 million reserve (nil at present), which is costly, and pay for a PFS and DFS. A lot of their resource is in the inferred category and perhaps fundies are not impressed with that measure.
Long way to go for them.
Still, this is very cheap if we can trust the markets to behave.
loki
AMX Price at posting:
44.0¢ Sentiment: None Disclosure: Not Held
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