IMO one of the key reasons for underground mining at BP33 and Carltons is to use tailings and waste rock from these deposits to backfill the grants pit. This saves us quite a bit of money.
Should the upcoming infill program at Carltons convert the resource to 80% measured and indicated (like BP33), I estimate this will produce an extra 100,000t to 125,000t of concentrate. At a US$744/t sales price, and using 0.7 exchange rate, this would be an additional $105mil - $130mil in revenues from Carlton. I anticipate this will then turn Carltons into a $40mil - $50mil NPV. This valuation is just an infill program away.
IMO
GLTAH
CXO Price at posting:
4.4¢ Sentiment: Buy Disclosure: Held
