Think the attraction at Grosvenor is the really interesting lode at depth rather than the other deposits. The plant sits right beside this deposit. RNI has also trialled leaching ore at this deposit and have had very good results, so could process over 2m tonnes pa. with a 1mt plant. RNI just ran out of money having seemingly bitten off more than they could chew and then got into trouble trying to finance their upgrade from explorer to producer in a very negative financial environment for such miners, with gold miners being at the bottom of the cycle at the moment. MLX might end up gobbling up RNI too at some point if their drill results are good. They are now debt free but almost stony broke. CEO gone, after new issue failed no money to pay his $300k pa paycheck. PC has got a friendly MD a lady onto the RNI board and who will run it for now on a day to day basis in addition to the other mine. I think they are drooling at the grades and ore below the Grosvenor open cut. This plant would cost about $140 million to build new. We are getting it and the ore for $24 million. There is over $40 million in sunk exploration costs there also.
On top of the Grosvenor there is a mile of deposits mainly lower grade which could probably be heap leached meaning quite large production without more major capital expenditure, Cookie has done it again.
MLX Price at posting:
$1.13 Sentiment: Hold Disclosure: Held
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