As an investor the key question to me is whether there is any value in this gold deposit? Is it worth spending $72 million to get 60% of the company? This is not greenfield start up. 6 months to get production underway is shovel ready. It looks a bargain.
So we get back to the JORC and the cash extraction costs.
This is not open cut so costs are going to be more than average and the way the gold appears to be distributed must increase extraction costs - a lot of dirt to be moved and processed.
Accept the JORC and I can see no reason why a JV partner won't move in and take control.
The question is why isn't it happening?
If it does not happen soon then someone, maybe a debt holder, is going to pick up a real bargain here.
Sooner than later.
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