turning points, page-4

A nice reply, Wilto

Luckylizard, the beauty of trial mining is that it is great for "high grade and bulk tonnage targets" where the gold is coarse, and it is difficult through drilling alone to get a definitive head-grade, for projecting the amount of gold produced in the real mining phase.

ABU have projected a conservative 10g gold per tonne, but are hoping that the grade proves to be higher, 12g+ per tonne, which will increase the profitability of the mine.

By using the trial mining approach the costs will be pretty much self funded as they aim to produce 3,000 ounces of gold, which should cover most of the costs. This will help to preserve their $10m in cash.

ABU miners are going to bulldoze and remove the top 2m to 2.5m of the deposit for the trial mining phase, a pretty easy process which hopefully brings great results!

Finally, with a small expenditure the trial mining equipment can be enhanced to allow for full-on mining to begin, once they have determined the head-grades, the % of gold recovered from processing the ore, and other difficulties and factors that they encounter during the trial mining phase.

So from the results of the trial mining being assessed in August/September, full scale mining should follow soon afterwards!

Go ABU, exciting times!