i want to buy small cap gold stocks, page-37

HEG fits each of your criteria, Portable Alpha.

It is already mining gold on a trial basis but is rapidly moving into narrow vein mining on a commercial scale. The company is scaling up a treatment plant originally designed for testing bulk samples. The plant currently treats a modest 60tpd operating double shifts on ore grading (diluted) at between 20 and 30gpt. My expectation is that current and planned improvements to the plant will increase plant capacity to 100tpd. While this treatment rate is still modest, it should be sufficient at the current POG, to fund development and some exploration. As I recall, cash costs are around $A300/oz. The gold is coarse grained and is being gravity separated. I believe a sulphide concentrate is being stockpiled for off site treatment.

Potential resource is huge. The company has contiguous tenements along over 30km of strike in the Hill End Trough in mid western NSW as well as other Australian and overseas properties. Some time ago, I calculated a potential resource of over 3M oz for Hill End. The current inferred resource is 175,000 oz. Historic production from the district is over 2Moz.

There are 25c exchange traded options which I haven't been trading. Like most juniors in the sector, the shareprice has tanked to bargain levels and is currently trading in the 10 to 12c range.