some interesting extracts from Karn's report re-formatted (by me) to make it readable
* The 80,000 tpa gravity plant sited at the Morning Star mine will act as a milling hub, the production from the Rose of Denmark, Dempsey and Hunts reefs initially being trucked the 12-14 km (7-8 1⁄2 miles) over the pass. If production warranted it, and the historic mines covered by regional licenses MIN 5299 are certainly rich high grade prospects, the Dempsey mine already has electricity, making it a logical site for a second mill to service the area; at A$3.5 million, a second gravity plant would not be much of a stretch, perhaps requiring only a few months profits to pay off. Then, as other historic mines are brought on line, more such mill hubs could be deployed in a similar fashion to grow production.
* Rose of Denmark: significant work has been done to upgrade the access road to an all-weather, all-year standard, and mapping of the underground workings has commenced; a 120 m blockage is currently being cleared and an underground diamond drilling & sampling program will commence once completed; in 1893 a tribute party mined 2000 ounces at an average grade of 2 oz per ton; historic production: 20,000 oz
* Dempsey: site of the first reef discovery and operation, a MCO channel sampling of a quartz reef with laminations along a small historic adit ranged from 8-15 g/t; electrical power runs in to site of the gravity plant that was destroyed in the 2006 bush fires; historic production was estimated to be 20,000 oz
* Hunts: 1 dyke and 1 separate reef; the exposed dyke is highly mineralized and fractured and can be observed underground via the Victoria adit, which at the point where it intersects the Hunts dyke produced grab samples assaying 15 g/t; one drill hole into the Hunts Dyke in 2006 assayed 135 g/t over 1.4 m and indicated the presence of a number of prospective reefs below the historic workings; the gravel road into the mine has been improved to allow easy access, and the historic adit has been rebuilt and refurbished; production from an open cut operation at the surface of the dyke yielded 20,000 oz
if you want more then you will have to pay for it, it would not be ethical for me to extract any more than what I have already using the 10% "for research purposes" allowance
MCO Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
