Gonnfishing and Tarmac, I agree whole heartily with you. I was talking to a friend who is another investor in Morningstar yesterday and he saw an article in the paper where Morningstar has applied for another mining licence. 10 hectares around the a1 mine. I can only imagine they would be fairly confident of the future or else why would they apply.
I have spoken with the company a couple of times over the past couple of months and they seem very upbeat and positive about the future. Particularly from September on when I believe as outlined in the progress report tonnages are expected to significantly improve. As you guys stated donaldsons and kennys will have a lot to do with this.
The risk has always been grade and not tonnages. Interestingly the Achille reef below level 15 to level 19 won 250,000 ounces at an average grade of 27 g/t.
Should drilling the gap zone be successful, being virgin ground it's possible it could yield a similar amount hence my enthusiasm to get in there and drill the guts of it out. I don' t expect whopping big grades from the assays as even assays from archilles was just 2 g/t but as mentioned when processed it averaged 27g/t. Once they find the ore source they can then focus on bringing even more ore up and ramping up the 80,000 tonne per annum mill.
While I am well aware of the risks as outlined by our other hotcopper friends I can't think of another stock on the asx more hated than this one at present. It's a far cry from a couple of years ago when the stock was being plugged no end by various holders at the time.
Looking very much forward to the next year provided the price of gold holds up. I suspect that will all depend on whether the world central banks write a few cheques to get things kicking along again.
Add to My Watchlist
What is My Watchlist?
