My understanding is that it can cost companies tens of millions just to access target. CGT have all the above ground infrastructure needed and they say that underground workings are within 160m of key initial targets.
From here it comes down to resource size (not disputed by anyone) and head grade (in purchasing the lease from LGL, CGT "speculated" that grades on the Northern part of Ballarat East would be highly commercial.
There remain doubters, thus the SP is sub 5c, and there is risk concerning the extent of the thus far positive results from Ballarat. Each successive drill result as thus far de-risked the target zone a tad and the market will respond positively to additional positive results.
I am not expecting Eldorado and nor does the company. My uninformed understanding is that over the old Vic goldfields are often disappointingly finite size limits to each target zone and while there are many follow on targets to be had there is no guarantee as per grade.
Careful planning and pedantic drilling for limited mining is not cheap BUT the saving grace at Ballarat is existing above and below ground infrastructure.
from the CGT webpage :
" Priority drill targets have been identified, some of which are within 160m of existing underground development via two declines that are at depths of 400m and 500m. The Sulieman and Woah Hawp declines have been developed from the south and are now at the edge of the highly prospective northern zones of the Ballarat East field. The high level of surface and underground development at Ballarat will assist rapid resumption of gold production following resource definition."
CGT Price at posting:
46.0¢ Sentiment: Buy Disclosure: Held
