A big positive for SAU, a tiny low capitalised explorer is access to financing for developing this 100k oz deposit. It is way too small to justify its own plant. MLX has a few days a week capacity available and I noticed the interestingly high grades of 7 gms and above in quite a bit of it. This allows SAU to swing into a bit more exploration in the immediate area. Cash is very hard to come by for small golds so this is a win for SAU and no doubt MLX management thinks it is a plus for MLX also. Running plants at capacity reduces the per oz cost of gold, other things being equal. That per oz is a big consideration right now.
My reading of railway crossing information suggests that one way railway overpass bridges can be obtained off the shelf for somewhere in the vicinity of $1 million. Level crossings are not a good look for a trans Aust railway crossing . Trains have to slow top 60kph in the vicinity of crossings.
This will also improve the market value of the MLX investment in SAU.
SLR Price at posting:
46.0¢ Sentiment: None Disclosure: Not Held
SAU Price at posting:
1.0¢ Sentiment: Buy Disclosure: Not Held
MLX Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
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