Good point Trendtracker, they have already stated shipping ore from Big Bell.
What we know for this quarter
1 - Stockpiling ore 2 - Lower mining costs 3 - higher average gold price. 4 - throughput 100% ( remember we had a major mill shut last quarter)
Next quarter
1 - Big Bell ramped up. 2 - Cash costs much lower 3 - very litlle capital spending 4 - Debt wiped! 5 - cash piling up 6 - ASX100 7 - Large stockpile of ore
Although located approximately 100km north of CGO, MGO’s Bluebird processing plant is larger and has a lower operating cost. As ore cartage and process cost is similar for any ore within the CGO area, these ore sources could be economically trucked north to sustain higher production rates at MGO. The Great Fingall, Golden Crown and Cuddingwarra mines represent prime opportunities to implement this strategy. The Great Fingall mine (Figure 10) produced 1.2 million ounces at a recovered grade of 19.5 g/t before it closed during the Great War (1914-1918) and Golden Crown produced 288,000oz at 13.8g/t before it closed in 1998. Recent drilling by Westgold has shown an extension to the Great Fingall ore body to approximately 1.75km at depth. This will become a priority development for Westgold when Big Bell enters a steady-state phase. (Refer to ASX Announcement of January 21, 2020). The spectacular grades seen in the Great Fingall and Golden Crown could be the lower tonnage, high grade icing on the Westgold’s group production cake with serious potential to enhance MGO and/or CGO production and costs."
WGX Price at posting:
$1.84 Sentiment: Buy Disclosure: Held
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