News: WGX Westgold Resources Says To Make Takeover Bid For Gascoyne Resources, page-14

Well, been doing a bit of research. Gascoynes resource base is mostly all low grade 1.0 g/t or thereabouts. They have come out of administration and would likely go back again if they keep mining this very marginal stuff which there is so much of in WA, if gold prices go lower. Really, its hardly worth the bother and the chances of decent dividends would rarer than rocking horse manure. Zilch. But it does have a big plant, fairly new, not all that far from Cue. But there is something else at Cue. The remains of one of the most profitable and superbly high grade mines in WA history, the Great Fingal, plus the Golden Crown, on leases owned by WGX. The existing WGX plant in the area will be pretty much occupied processing Big Bell ore for a decade or more. WGX maps show this as an underground operation, and quite large, requiring dewatering etc, but sporting about 8g/t, which by todays lower grade standards is pretty exceptional. The numbers on WGX table for Day Dawn area do not really match up to previous information.
Does not look like too much of a haul to the Gascoyne plant. The cost of building this plant would be way higher now, but it really is never going to do more than pay wages and directors fees for a while. Providing the gold price holds up. from the investors point of view, a dud. Only some leverage to a higher gold price.
So Add Gascoyne plant to Great Fingal and Golden Crown and it might be a real winning ticket, not only for the usual beneficiaries, the directors, etc, but to investors, a rare thing in gold mining these days. In the day, the Great Fingal operation paid investors three time their stake money. A decent return, unlike a lot of others. Even for Gascoyne shareholders at the moment who have a snowballs chance in hell of ever seeing a dividend from that operation.