Hi all. @WacthitCrissyNot a silly Q at all.The history of this...

Hi all.
@WacthitCrissy
Not a silly Q at all.
The history of this project makes it look like there is something wrong.
I won't go back too far as there would be too many other factors to consider like the price of Gold and Antimony which taint the whole historical picture.
If we look at the previous owners, Red River Resources, and how they managed things under their watch.
They prioritised their Nth Qld asset and for good reason.
This just happened to collateral damage imho.

I am here for a number of reasons.
1. Exploration success being the main one as I do expect this to be a lot larger along with higher grades.
2. They picked this up for $6/oz
Show me any project where they can do that with a plant to process. You can't drill for that.
All be it, concentrate.
3. They have a brand new crusher and conveyors that will double the capability.
They will still be producing concentrate. At 500kt/a and at a grade of +6g/t the economics should be very attractive.
4. This is the largest Antimony resource in Australia and the 10th in the world.
5. They could do an off take for the Antimony to provide the necessary funding without further Cap raises.

Yes they have 1.4m oz but we need to see further info like asic, mine plan, exploration and grade improvements.
We are also very privileged to have the support of rising prices of both our materials.
This will continue to produce concentrate so POX will be redundant.

I look forward to seeing their mine plan but it will be very much dependant on how exploration develops and funding plays out.
We can flick the switch at any time in the future given better economics as the prices for our materials rise.
There needs more clarification on the costs to mine and process here but there are no deleterious materials.

To answer your Q without guessing the numbers, I simply look at the resource and the grade which is very easy to like.
The real calculations need to be made as we progress with further exploration, funding, plant upgrades, take off agreements, (if any), mine plan, etc.
I hope that hedging will not be a consideration here or we cripple ourselves to rising gold price.
Your gross figure is correct but we do need further work to see how this becomes more economic.
So far, it looks very promising to me, particularly the type of deposit this is and potential res upgrades.

Hope that helps.
Kind regards, Wack