Ann: Penny Gold Mine Update, page-39

Just a final post before I return to stocks I hold. I do think RMS is a strong buy right now once the market wakes up to the potential at the Penny Deeps. The gold vein was followed to 400 m as per per the description below and with mineralisation continuing. So why did RMS not include this massive extension to Penny West when drilling it out? This could double or triple the LOM of Penny which is exactly what RMS need.
IMO the reason is that the ore turned refractory at depth and RMS were not equipped to process it. If correct, this new drilling is a big change for the company and very smart. At depth the quartz hosting gold with sulphides is almost certainly refractory but it isn't a big obstacle. If RMS choose a gold concentrate model it will be low arsenic high recovery and low Capex. At the grades we are seeing the cash flow will be huge. The Chinese tax on gold with high arsenic content has driven demand for low arsenic concentrate that can be mixed with less pure to get under the tax imposition. Or RMS could add a Biox or Albion circuit to Checkers.
Over the next months holders are likely to see continuing spectacular results below the Penny's and down the track a new JORC resource estimate that will be very impressive imo.