WGX 0.00% $2.20 westgold resources limited.

When I first looked at WGX I too went back and looked at...

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    When I first looked at WGX I too went back and looked at historic mill Capacities under prior operators to understand WGX's options.
    A very interesting add up of numbers
    I suspect the prior purchase of a pebble crusher for Bryah at $8m and $3m? installation cost in the scheme of things for NO increase in processed tons highlights a simple issue that was amplified by initial costings of a Tukabiannna Mill $60m plus upgrade or full replacement.

    That is that the easy milled ore is gone from existing sites and the harder to process ore is left especially as mines get deeper.
    I will leave the question, as to if the pebble crusher was actually economically justified or a salesmans quick fix from prior management?
    There didn't seem to be a hurry to install it under WB.

    If you could place yourself in WB's shoes you would do exactly what he has done as a mining economist first and geologist second.
    It comes down to money,hence the Capital raise and re-organisation of operations to maximise cash flow.
    Corporate investors fronted quickly with funds under W.B.
    The Quickest cheapest paybacks.Better Staff rosters/getting rid of disposable onsite food trays and other low hanging cost fruit
    The mills will require upgrades to handle future ore at anywhere near their original nameplates.
    You get a quote and think $60m plus just at Tuka and it probably won't be perfect as you can't profile a longer term standard feed profile.
    You then shed business costs and excess ounces that were being produced at all costs for next to No financial gains.
    Bring down site costs-then as you get some CASH and you start looking at further cost reductions.
    Hybrid boggers and trucks,right sized for operations to lower costs upping productivity and reduce the need for extra underground AIR shafts.
    Innovative and remote detonation of faces over shift change etc.controlled air supplies as vehicles pass to reduce energy demands and waste.
    Energy is a simple one to target and no matter what mill configuration you decide you need you still need POWER.
    Next step cheaper power to lower overall costs UPFRONT.Hybrid gas solar and storage.
    Cash keeps coming in due to your economies to date so you don't have to take up a planned $17m loan after all,ultimately taking ongoing power costs lower.

    But ultimately for investment in milling infrastructure YOU NEED A 10 YEAR PAYBACK of Capital.
    Otherwise you do a RMS and have to continually chase high grade buys of easily processed ore to keep rolling until you can't.
    Maybe why they keep deferring deeper development?
    WGX Can't justify that plant upgrade until you know what your buying to process your ore and can't do that until you know what ore and how much you want to process.
    Hence where we are now BB mine 10yrs plus and other life extensions on the way.
    Until there is certainty of that feed profile,there will be minimal plant upgrades,unless their immediate demand is glaring.
    Once ore is physically accessed and its processing properties and needs obtained with some certainty then we will see swift action on plant changes I have no doubt.
    IMHO WB doesn't plan on paying trucking of ore any distance for 10yrs if he can mill it onsite.


    DYOR + DYODD WB runs a tight ship.I wouldn't bet against him as even when he appears to lose he's won.
    IMHO There's a different angle there as well.
 
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