assuming CGT at Ballarat uses selective extraction of quartz as its mining method (almost certain) then there will be minimum dilution by the sedimentary host rock - the rock from tunnelling thru the sediments and development ore could be dumped as waste and not processed (much different to what Lihir were doing)
for that situation of only processing gold-bearing quartz the processing plant could be converted to a pure gravity system much like MCO's processing plant
there will be some cost savings in doing that but it's unlikely they will do it because they would want to recover the last few grams per tonne and not let them go onto the mullock heap, even though it is probably about economically break even or only marginally profitable
keep it in mind maybe if ever there are any local objections to the tailings dam or the use of cyanide and detox chemicals, as the cyanide circuit and the tailings dam become redundant for pure gravity processing
CGT Price at posting:
60.0¢ Sentiment: Buy Disclosure: Held
