Whilst decline specifics are a little rough... the point he tried to make is.. if a decline could be developed into the middle of Never Never, then... another decline added at the top (once the open pit is finished), they could "incline and decline off that to get multiple mining front's happening in the Never Never load simultaneously, get to that 300m juicy strike section a bit quicker....".
I know quite a few posters seem to think that Never Never cannot provide a large amount of tonnes p.a, but... when I look at the many U/G mines across W.A being run my small/mid tier producers, 500k-800k p.a seems very plausible over the medium term.
That is of course, just from Never Never, let alone any bulk U/G mining that could occur from West Winds, Sly Fox etc. From memory, BGL have 5 separate mining fronts, which is largely due to the thinner widths of the lodes. SL is at pains to explain how thick NN hits are and how... they are going to provide a lot of ounces in large mining fronts.
It has been an interesting week to say the least, with good results and POG moving. Yet, when I look at what has occurred over recent years, the smaller developers have almost 100% fallen flat because... their open pits are just not profitable. PNR, CAI, OBM. All had major issues because, overall, the pits were not large, the grades were average at best and... the costs to mine, just too high.
Where am I going with this... SL knows this and so does the newly recruited GM. If SPR don't have to undertake a major cuttback, then the restart costs are lower, less TSF less staff less.... etc. Whilst grades will be higher from U/G.
SL mentioned that Alex is perhaps a tad put out by the continued success with the drill bit, because the goal posts keep changing so quickly.
Any potential predator of SPR can run their own numbers on what is in the ASX releases.
Until a while ago I thought it likely that SPR could not stay independent, but... BGL has proven that if you get big enough, then... for all intensive purposes, you become out of reach. This seems to be, for me, becoming slightly more likely.
We will see of course.
Much respect to any investors who have held firm in the gold sector over recent months. It has been a real grind.
SPR Price at posting:
59.0¢ Sentiment: Hold Disclosure: Held
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