Heap leach would require fairly strict enviro approval. The G men get a bit testy when you suggest dozens of poly liners with cyanide spraying out over them. The other thing about heap leach is that I thought it was more suitable for lower grades. Agreed the constant issue of a treatment plant and its cost is the millstone around this operations neck.
Effectively the problems are two pronged. Firstly ambiguity about KB revenues and costs(must be bad because its top secret). Secondly the highly expensive treatment Plant development cost which is astounding bearing in mind the fact that the Mill is already owned outright by KMC and is larger than required.
Either way my impression is that the expectation of how the market would behave has been incorrect. The theory is that there would be a rising wave of interest based around "Ye Olde Lolly Shoppe". The reality is that the approach has been "Show me the Money" and then the stock has been punished severely. Its a bit harder this time than the excitement of Chris's former vehicle at Posseidon. The question is are these guys Yesterdays men. Its going to take more than a bit of bulldust and bling to win the market over with this one. The Games changed in the last 4 years.
Alex999 I mentioned 30 cents almost in jest but my point was the very real danger currently that the flawed strategy employed at the moment could fail. The next quarter is really a "make or break" The next step is further adding to the resource and reserve to give this a bit of credability and fessing up and making changes if required to the current mining strategy and toll treating arangements.
KMC Price at posting:
2.2¢ Sentiment: LT Buy Disclosure: Held
