BHP discovered the deposit and did the first round of drilling back in the 80's. 320 something thousand ounces was too small for them and the tennament was put on the back burner. Then over the years it changed hands and had issues mostly to do with access to the site which is located on a wheat field 10 or so km out of Narembeen Township. Explaurum took it over 1 and a bit years ago and solved the access issues and have been drilling the fcuk out of the 500m by 900m "pit". There is gold from the surface down at varying levels and their own estimates are that they will need 120mil to set up the mine and extract the gold with a pretty good recovery rate in the 90% range.
I am extimating that they will come back with a new resource guideline of 900,000+ ounces which at todays gold price would be worth $1630aus x 900,000 ounces = 1,470,000,000 dollars.
The company is currently valued at 50+mil - so to a logician the math adds up.
Does anyone out there in EXUland know what kind of figures they have given so far in terms of cost per ounce?
EXU Price at posting:
14.0¢ Sentiment: Hold Disclosure: Held
