Bill
The $400k didn't come from St George or it would have shown up in the St George Accounts. It is possible the company has sold on the Gamma tenements. There would have been surface drilling results and they may have been encouraging enough for the accountants now running AAM to augment the cash flow. These tenements will be superfluous if A1 is moving the plant in 12 months. The gamma tenements still show up on the new website but that just could be an old map looking pretty.
Supergene ore is wet and tricky to blend. It is from the deeper levels of the North? pit, located at the old Mikado underground mine site. I doubt they would have just ripped it out willy nilly and carted it to the dumps but you never know. Watpac is dewatering the Mikado via old manways. How far these extend downwards I don't know but the sensible approach is to take the water level down as far as possible, thus draining excess water from the floor of the pit. The longer the pit can remain unmined, the drier this ore will become.
Digging the supergene is expensive because it requires additional grade control drilling to accurately outline ore geometry. Gold has literally been washed into the supergene zone from above and it will have followed whatever joints and cracks provided a conduit. Some of those cracks are in the gold bearing quartz veins but not all. The supergene is super high grade in part. The company is very much aware of the value of this asset and is unlikely to be wasting it.
Low average grades over the past two quarters is an indication that very little of this supergene ore has been mined. Anyone phoning Albert might ask how much of it remains intact.
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