Finally.no doubt Old Mutual will be happy with its investment...

Finally.

no doubt Old Mutual will be happy with its investment decision and the companies latest direction.

FML has set the stage for Institutional investment,targeting a 10yr life of Milling for the Coolgardie plant.Well into the process of doing so for Laverton as well.
Barnicoat mill will only start when there is 10yrs ore ahead of it,in addition to that required for Granny Smith.

For those wondering when institutions will step up,well this is twice the number at which they start looking at you and what the MAJOR PLAYERS in mining seek at least to start mining a new site.

The plant I'm involved with has 50yrs plus Ore Resource ahead of it and has been running for 30yrs.

A Major Transition in place,with growth to 235k possible if a 10yr life of mine can justify it.

I doubt anyone has any doubts those resources will be found.

Does it change anything-YES and NO.

The target was always 235koz next,in case you've forgotten.

The new finance man has just lifted the minimum height of the bar before that happens,that's all.Now we know what the Geo's have been targeted with producing.

We know the pressure now directed at the Mill-constant stable production,with reducing/bare bone costs.

We can see the pressure being exerted on contractors to up extraction and reduce costs.

We can see the exiting of underground contractors as well.I can only suspect 3-4g/ton underground costs the same per ounce as 2g/ton from a no hassle open pit.Get them deep enough and your into the same resource.i.e Empress pit bottoming out at 5.5?g/ton.

Coolgardie's sorted for near mill ore.
Laverton's Burtville has similar potential for Granny Smith.

Barnicoat's current potential is now obviously established specifically at 1.45 MT,which fits in well with its TWO grinding plants(scavenged from two old mines)currently in parallel,opening up the option of an innovative two stage grinding circuit operation(just unjustified musing on my part on what could happen)Could even end up with two separate grinding circuits,one for soft and the other for hard ore,or go the AXM way,one for oxide and one parallel line for sulphides,or maybe gold containing copper.
It still is without a crushing circuit or circuits.

Its happening and boringly so.

DYOR+DYODD