WGX westgold resources limited.

Its all about easy road access - GCY's mill is some distance...

  1. 2,631 Posts.
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    Its all about easy road access - GCY's mill is some distance from good roads.
    Even Mr Lawson in his latest GCY interview said if original management had drilled out their initial resource properly then they wouldn't have built a 2.5mt mill.
    What has inhibited WGX production but bad weather and road access to mills,forcing use of stockpiles instead.
    That is why they are upgrading their road access around Cue to mitigate the issues of the last year.
    You forget the 2.5MT mill at Kirkaloca doing nothing caught up in legal cases ATM. further down the main road from Checkers.
    It is also the ore being fed that determines the Mill capacity.
    Look at WGX's individual mills and see past production rates and yields.
    The future potential tons in existing plant is there for all to see.
    The best and easiest ore in most cases was processed long ago now harder ores with detrious materials have lowered throughput and mill ratings.

    GCY's never never has a shale/silica? host different to what the mill was originally designed for so it may run at half speed max,who knows until test work done.

    No need to build mills if you run as a long-term business with a 10-20yr business plan.
    Opportunities present themselves either through incompetence or market downturns close or complementary.

    The question is who is setting themselves up for longer lifed MILL operations in the area aka NST and who is living hand to mouth for ore to fill mills.
    RMS is paying handsomely for tenements south of Checkers bought by MGV for comparable peanuts less than 12 months ago.
    Just before WGX started accruing a few shares cheap.
    Maybe the original RMS plan was just to buy MGV out of those tenements for say $50-$60m to finance their planned mill before WGX nudged their current bid with a takeover offer.

    DYOR + DYODD IF something really doesn't appear to make sense such as WGX bid for MGV, normally its because you haven't seen the angle or management is mad.
 
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$2.97
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