Been doing some research on this announcement The Forrestania...

Been doing some research on this announcement

The Forrestania deal to me sound a bit suspect. Other companies looked at this and walked away, although gold prices were lower then.

It is a long way to haul ore for treatment to Coolgardie or Norseman. Southern Cross would be okay.

Lady Ada mine requires a big cutback removing a lot of waste before they access any ore. Expensive. They also need to do some more drilling to upgrade the resource and establish a reserve, which is ore mineable at a profit taking into account all factors. This all costs money and they haven't indicated where and how the money will be raised. There is no Measured resource (highest confidence category) and the Indicated Resource is only 283543 t at 1.78g/t, while lowest category Inferred Resource is 259 359t at 2.25g/t. Both of which are a lot less than the 8.8g/t mined by Sons of Gwalia.

The Lady Magdalene deposit is low grade at 1.08g/t and is also in Indicated and Inferred Resources. It might be difficult to make much at that grade and a long trucking to a mill.

Also as I understand it the management at Classic have never run a mine in their lives, and so I wonder if they can. I doubt it.

I would love to see it happen, maybe if the POG keeps going up might happen who knows but looks like we have already stumbled at the first hurdle.