50,000oz/pa production is about $130m/pa gross revenue. So depending on the AISC would generate a tidy annual profit.
deposits smaller than 500,000oz can be mined on a smaller scale operation, which has lower capex, or can be toll treated to keep upfront costs down.
What CLZ has is a global JORC resource of 404,000oz across its broader Forestania gold project which includes Lada Ada (59,700oz), Lady Magdaline (251,350oz) and Kat Gap (92,856oz).
So it's getting close to that 500,000oz mark now and with the grades that Kat Gap is producing and the fact that Kat Gap is open in all directions indicates that there shouldn't be too much trouble to get to a global regional resource of well over 500,000oz before too long and all relatively shallow at that!
To give you an idea of the potential upside in the current MC, CLZ is currently valued at about AUD$18.25 (US$11.60) per ounce in the ground. The recent takeover of SPX was at a MC of circa $200m with 355,500oz (albeit at higher grade, but much greater depth) which is about AUD$562 (US$358) per ounce in the ground.
CLZ Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
(20min delay)