When I spoke to JG a few weeks ago, he said the rail was under utilized so they were hoping for a good deal on freight. So they do need to have infrastructure for the 50kms to get to the rail. How much of an impediment is this? For the tonnage a rail extension seems unrealistic, so I assume they would truck the ore the 50kms?
There are a number of prospective gold miners doing exactly this getting small iron ore projects up & running whilst they are looking to get their main gold projects up & running. Although not having Deflector financed last year is very disappointing to say the least, I don't agree that the iron ore is a bad strategy if they can get it to the rail for a reasonable cost. With iron ore trading at $130ish a ton there should be some pretty good money to be made I would have thought. A lot of this is supposition & we do need to see more detail around things like transporting the ore. I was told total capex to get this operational was around $4M & if that's the case then it should indeed be a great little earner. Proof will be in the puddin though!
MYG Price at posting:
3.5¢ Sentiment: Hold Disclosure: Held
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