Ann: Mine Study Revisited at Pinnacles JV Gold Project, page-14

On 13 March 2020, NXM discussed that it was discussing pre-payment of ore delivery to get Pinnacles underway:

The Company is in the process of conducting preliminary confidentialdiscussions to secure funding for the feasibility study through to aimedproduction. These current discussions focus on working towards a goldpre-purchase and funding agreement to provide funding of approximately$5 million. These discussions are an incomplete negotiation and noconclusion can be drawn at this time. The Company will keep the marketinformed in the event of a material development from such discussions.

2 November 2020, NXM discussed what is generally known that all the haul roads, ambulance/mine rescue, and all the rest is covered by NST (formerly SAR):

Dueto the pre-existing ore sale and purchase agreement with Saracen, there is minimal capital expenditurerequired to initiate mining, with any ore mined to be processed through Saracen’s Carosue Dam Operation.

AGM presentation November 2020:

LOW CAPITAL COST Development De-risking project metricsHigh AUD$$$ Gold Price $2,500+++Accelerated production timeline

By July 2021 the quarterlies did not refer to any work at Pinnacles, gold price related?



Then by Annual Report in October 2021, Pinnacles put on the shelf for now:



So what is the increase in the margins from AU$2300-2500 per ounce to AU$4000 per ounce that makes Pinnacles worthwhile - at what point is it cheaper for NST to pay overs for the remaining 90% of Pinnacles versus paying NXM per ounce delivered to the ROM pad?

Just spitballing but is NST better to buy Pinnacles for $500 per ounce; or pay the margin per ounce delivered (whatever it is now? $1000 per ounce? $1500?) and most of the OPEX for ore delivered to Carosue Dam, with no control over deliveries?