Look, I'm not in a position to speculate on the initial resource statement, but from the results released to the market (to date) it appears that the resource structure is narrow and deep (but open at depth), so I'd welcome people better qualified in gold mining to comment. From what I am able to deduce, the grade is more consistent and improves at depth. The trade-off, is a heap of overburden material containing little to low grade gold containing ore that needs to be stripped to get to the good stuff. But again, I'm no expert and could be wildly off here. First and foremost we need a resource statement informed by more drilling, then ongoing drilling to prove and build the resource profile.
To me it appears that despite the gold price having increased markedly operations like Tietto would never get off the ground today. The market desires more scale, hence why I think they took advantage of Mako which never had the funds and the management to realise its potential.
No one invested in this stock believes this is the last dilution. To get a operation going costs somewhere between 150-200 million (if not more). I like two things: 1. gold recoveries are excellent, which makes the possibility of a smaller operation to process and leach material possible (get some cashflow going), 2. Perseus Mining are onboard. They have a market capitalisation exceeding $3.5 billion. I'm glad they are onboard rather than some Chinese entity that will attempt to gobble us up for peanuts. Equally Perseus aren't stupid.
If things come off, AUE gets a PFS completed for a decent resource profile and Perseus sweep in and take us over.
AUE Price at posting:
36.0¢ Sentiment: Hold Disclosure: Held
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