Just got my copy of the history book "Gold at Gaffneys Creek"A...

Just got my copy of the history book "Gold at Gaffneys Creek"

A few things stand out

(1) the exploration licence area MCO controls certainly has vast potential. No modern company has ever had the capital to explore and the exploration of old timers was very rudimentary. Lack of capital was a major problem ,plus of course the terrain. MCO, assuming things go to plan, should be in the envious position early next year of having a very large exploration budget the likes of which has never been seen before in this goldfield. Historically gold miners paid most profits out as dividends during boom times and then had no money to spare in the bad times.


(2) the impact of fixed gold prices in the 1960's on gold miners. I often wondered why even a mine as rich as Morning Star wasn't worth the effort. As an example the average wage rose fourfold between 1940 and 1960 whilst the gold price rose about 50%. Gold mining was a very labour intensive business back then. There was a gold price subsidy in place in the 1960's to keep gold miners in business

(3)Diamond drilling can be very hit and miss in these mines. Some good stories of diamond holes drilled from surface missing bonanza reefs later found by sinking shafts. Which is why the the success MCO has had with the drill in the last couple of years takes on new significance for me, esp hole MS357 in the Shamrock/Dickenson reef area 4m @33.6