trtkjd1 wrote .."Many will say its the 10 million 0z of high...

trtkjd1 wrote ..
"Many will say its the 10 million 0z of high 13-14 gram gold jorc , but surely that jorc given the production so far must be in question".

A large (geological) resource - even if it's seemingly high grade may in fact turn out to be uneconomic when you have narrow veins and underground mining involved.

The thing is if you need to extract say 39 tons of earth to get to each 1 ton of ore .. what that means is the 13g/T suddenly ends up being 13g/40T = approx. 0.3 g/T.

The Development costs (tunnels) are very expensive to build
- you can start with low cash operating costs of say $500/oz .. which may add up to $700/oz in total (if you include admin costs, royalties and exploration etc..) ..but if you add the Development Costs to this (tunelling costs,developing stopes etc..) of say $1,000/oz plus to this .. suddenly you're looking at costs of $1,700/oz .. which would render this project unprofitable.

You just need to see an unprofitable underground miner such as BCD to see where that too is failing - and it may all boil down to the fact that underground mines may need wide veins - something approaching 5 metres width on average perhaps to have any chance of becoming profitable - that's where the problem may lie.

So KRM for instance is proving to be a profitable underground miner .. in the same way as DOM was with its Century Mine - due to wide veins that are averaging 5 metres.

CTO may need to be more transparent and upfront and if I was an investor in CTO (and BCD for that matter) I'd be writing to the ASX and asking the ASX to order CTO to conduct an independent assessment on their projects to prove that they are economic.,, before they continue to harvest their shareholders and capital raise again .. enough is enough .. it's time for transparency.