gold, page-113932

I have a question plz help?

How much money could be saved and what would happen to market cap if RED AND SBM decided to merge?
anyone with good insight?



For the last six months the five major landholders in the district – St Barbara, Raleigh Finlayson’s Genesis Minerals, Red5, Kin Mining and Dacian Gold – have been engaged in a complex dance aimed at bringing together their scattered deposits – and gold processing plants.

So far only Dacian and Genesis have consummated any of those extended discussions.

While Jetson won’t be drawn on the status of any of those discussions, he tells The Australian that the extensive due diligence conducted by all of the companies had made the size of the eventual prize clear to all. “I‘ve got all the reserves and resources that I need for the next 30 to 50 years, but I can’t process it. Others have got very limited life of mine,” he says.

St Barbara’s 126-year-old Gwalia mine – once managed by Herbert Hoover before he became the US president in 1929 – is the jewel in the Leonora crown.

But, as it stands, Gwalia’s mill is capable of processing only 1.2 million tonnes of ore each year – it would take more than 85 years to process St Barbara’s current gold through the small plant.

Near neighbour Red5 has a 15-year mine life for its new 4.7 million tonne a year plant at its King of the Hills project, but that mill is also due for an expansion.