Australia's largest stock trading and investment forum Australia's #1 stock forum

AOP

Click for more information

0.00%

61.0¢ apollo consolidated limited

Ann: New High-Grade Hits Lake Rebecca Gold Project, page-8

First 8 Last

Share
Profile

Follow
stayhere

1,402 Posts.

6

27/06/19

18:19

Post #: 39274244
Share

Originally posted by eshmun: ↑

Yes some strong and reasonably shallow results from Laura and Jennifer NE and a couple of infills at Jennifer confirming the core of that shoot is solidly mineralised (the planned hole below hole 401 could help expand the core of this shoot quite a little).

If the broader mineralisation at Rebecca had any real oxide component to it I'd say we could have been looking at a goer and one big cash cow of a pit. Unfortunately the economics will be more tricky as the mineralisation is largely hosted in fresh rock and there is a reasonable amount of stripping to do before cashflows can be produced from any of the mineralised areas. The company either needs to get lucky with some oxide ore (which is probably unlikely seeing what has been up-earthed so far) or they just need to find much more shallower fresh higher grade mineralisation such as been indicated by recent drilling.

Unfortunately it is a tough time for explorers and developers, despite the buoyant gold price, as the market has largely abandoned them (and for good reasons). They really need to "properly" prove the viability of their projects before sending investors down rabbit holes of failed mine developments like we have seen a string of recently. I wonder if AOP can resist the temptation of following many of the other gold developers down failing pathways. I'd say probably not because if they pull the pin on this project they are left with practically nothing and the prospect of starting again. That's the problem with the sector, people won't let go of their projects because for directors and promotors they are jobs and cash cows no matter whether they succeed or fail. It shouldn't be up to the investor to figure out if a project is a goer or not, it should be up to the process. Failing projects just shouldn't get funded but they do because humans put greed up before pride and honour and look after their own little patches, their own vested interests and these projects/companies are built from a whole bunch off individual vested interests, that's why they are failing more often than not, because they shouldn't have been given the go ahead in the first place. Bank funded projects should be far more investable (derisked) than "non-funded" projects but alas they are not as we have seen. Investors should be able to differentiate between the risk of owning various gold projects based on the level of due diligence done and the feasibility level achieved and especially once banking feasibility has been completed but alas this is not happening either, take the recent cases of GCY and DCN. Without this sort of derisking structure what are investors left with? Answer: One big ugly roulette wheel, place your bets. You might as well go to the casino as the results are much swifter and the pain or joy comes at a commensurate speed. Better than being bled dry slowly by vested interests in gold projects who just move on when their stories get exposed as being full of holes.

Not saying that Rebecca is necessarily one of these projects or AOP is one of these companies but if I have learnt anything in the last year is that grade still remains king and you actually need a lot of things to be "right" with your gold deposit to make money from it, ie two wrongs don't make a right as we all know, but a right and wrong don't necessarily make a right, what you actually need is two or more rights !! Esh

Expand

" The company either needs to get lucky with some oxide ore (which is probably unlikely seeing what has been up-earthed so far) or they just need to find much more shallower fresh higher grade mineralisation such as been indicated by recent drilling."
You need understand Gold in Metamorphic Rock. this kind of deposit is not many in East Goldfield, only Tropicana and Big Bell. Both are big size and the recovery rate in fresh rock is about 94%, Lake Rebecca is same,90%+ recovery rate is guaranteed(last test is about 90-94%), so oxide ore is not important to Lake Rebecca project.

AOP Price at posting: 24.0¢ Sentiment: Buy Disclosure: Held
9 Upvote

5 Great analysis

Reply

Top Stories

The Rising Tide: How institutional adoption is shaping the future of crypto

CC9

Chariot locks in high-potential drill target at Black Mountain, one of the USA's largest lithium landholdings

IPH

IPH raises $100M to buy up Canadian IP firm Bereskin & Parr

EXR

HotCopper users humming as Elixir Energy reports first gas flowed to surface at Daydream-2, QLD; shares jump 15%

The business of sport: Warren Tredrea's take on this week's news

RDN

Raiden gears up for exploration in final quarter of 2024

NRX

Noronex kicks off EM survey at Humpback, Namibia – part of South32's earn-in deal to access Kalahari Copper Belt

How flooding did Strategic Energy Resources a favour: Four holes down in 'redesigned' gold & copper campaign

Reporting wrap: Inghams, Accent, Mayne Pharma

Dale Gillham's weekly wrap: responding to a weak iron ore price with investing decisions

There are more pages in this discussion • 9 more messages in this thread...

First 8 Last

Add AOP (ASX) to my watchlist

SPONSORED BY