Hey CB, fair call, but... the MD has tried hard to explain that the current mine plan, is the base case, with.. the upside being approx double the 45k you mention over the medium/long term, if they can duplicate the production at Golden Crown. Also as I have mentioned on the other threads there is potentially remnant ore and stopes that were not completed or mined almost all the way down.
RMS recently put one of their U/G mining developments at Mt Magnet on hold which would have cost $150m+, instead they decided to buy MGV for over $200m. Yet both options were/will only going to offer 40-60k p.a over 4-5 years.
Also, arent you being a little tough on them, most mines that revisit old workings, don't replicate the original lodes/grades, because... the old timers were actually good at finding and mining gold.
They have spent considerable capex on drilling over recent years to get to this point, so while the $60m over 2 years is a significant investment, it's going to provide a 8 year mine life. Most of WGX producing assets don't have anywhere near that.
Why do you say 45k is a small amount though? GMD won't be pulling that much out of their much vaunted Ulysses asset, even though they were able to basically pretend it would be a huge step-up in production if they got hold of the Gwalia plant for almost $700m, with some gold too of course (with... no reserves booked until, funnily enough, after the deal went through).
Appreciate the differing opinion though CB. I can agree that there is less certainty with the Great Fingall ore, than say, BGLs, which has been continuously drilled and drilled.
WGX Price at posting:
$1.41 Sentiment: Hold Disclosure: Held
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