Ann: Western Queen Resource Upgrade to 163,000oz Au, page-47

Hey Spec,

Finally got around to taking a closer look at this announcement. Got to say, I am surprised at how positive all the comments were....
The 'upgrade' is not really an upgrade at all! Sure, there are now more ounces booked as a resource, but... no one even discussed the huge reduction in the grade.

This is the resource when RTR bought in in 2019.



This is the total now.



Only a 38% decrease in grade........
Open pit down by 34%. Underground down by over 50%.

Then you have the resource now being economic when using an AUD $2700 price (versus the AUD price back in 2018 at $1700 per ounce) and you have what on paper, could have been very profitable to toll treat, become... as you so eloquently put it, 'just a distraction'.

As a GCY holder, I am honestly very happy we did not buy the asset from RTR, as in reality, the open pits hold around 60k ounces, with perhaps half that viable for mining, so...30k ounces. Not nothing, but.... if you include all the pre-stripping and other ancillary capex, its barely going to make any producer take a second look (even GCY who is clearly needing more ounces).

Luckily, RTR no longer needs this asset. So I am not surprised they have suddenly, decided to get rid of it....



They can only hope that GCY will end up offering them something for it. Not sure what 30-60k ounces are worth, but... its not the $171 per ounce that GCY offered FFR for their ounces. It is only going to cost GCY $5m in upfront costs to start mining FFRs open pit, at surface deposit, versus Western Queens unknown high strip costs.

There is a reason RMS sold it to RTR.

Whilst I am obviously being quite negative, the reality is, RTR has spent a lot of capital on this project, yet... the results have proven that Western Queen is not going to become a stand alone operation.

Good luck to all RTR holders. I hold ZNC and hope they find the motherload elsewhere....