So.... after re-reading
Eagle Res 2018 report on WGX by Keith Goode, he has a presence online too, plus I continue to enjoy his reports and check back with his predictions/assumptions.
Firstly, cheers again
@wassa for the discussion on this thread. I was too optimistic in regards to the grade, but... happily saw the amount of ounces in the mine plan beat my early guessimates. Though, this post more looks at Cudingwarra and why it has become an exploration target again... in the sense that WGX has a plethora or targets to chase, I mean, they just have so many open pits they could chase U/G, let alone look at expanding old open pits.
So I am trying to think strategically in regards to where WGX is focusing their exploration (particularly in regards to future acquisitions).
WB recently mentioned that a large % of the exploration budget is on Great Fingall, which makes sense as it will be adding ounces to the mine plan in the near term as well as potentially being expandable, to achieve greater efficiency of scale. This from a week ago.
Fortnum - Peak Hill, makes sense, they want to have another source of feed to reduce reliance on their one U/G mine.
Bluebird Mill - Gibraltar... open pit oxide feed? To better match all the harder U/G ore coming from Bluebird/Paddys.
Tuckabianna - Caustons (fine, it's beside the plant & U/G, and already developed). Cuddingwarra...? currently only had open pits. Black Swan South looks interesting, though it's currently not in the MRE at all.. Yet used to have almost 300k ounces.
The 2012 MRE below is from Aragon (was swallowed up by WGX, which, interesting, had ol Cookie on the board).
As I understand it, WGX has mined one/some of the open pits at Cuddingwarra, but... very few details on exactly what and how much ore/ounces were achieved. Hopefully WGX can finally start giving more detail on their expanded exploration programs.
Though I guess I am hoping they looking more at the U/G potential, as, from the simple numbers, Big Bell, plus Fender will fill Tuckabianna, so... Caustons is on top of that, and,... Cuddingwarra is on top of that again? Or could this again be about finding some oxide for a better mix at Tuckabianna?
I think the Eagle res report goes a long way to show just how prospective the whole tenement package is (let alone just Cue).
Hopefully with time, WGX can use modern tech to better sleuth out what the old timers missed. Have to wonder, have the exploration team thrown a hole at CBS184 target... just to answer Keith's pondering? 134m @16g/t is.... crazy.
This list of open pits (and 2 U/G), is just for the CUE region. Almost everyone listed has not been tested at depth.
So... could WGX be having some exploration success which is driving the share price... probably not
as I am guessing it's just WGX unhedged gold that has the big end of town interested, and the restart of dividends (that might actually be sustainable for the first time).
With the hedge now out, WGX is 3 weeks away from having 2 full months of unhedged sales (perhaps 15-20% of total sales for the quarter will be hedged sales), with POG averaging almost $2950 for the quarter (I am hoping we see 58k produced/sold) might see 10k at $2459, with 48k at $2950 for an average sale price of $2865, with AISC around $2000, which before non-sustaining costs & exploration, might generate $50m. $6m for exploration and $6m for Fender, and they could get close to $40m (there will likely be other costs, like Big Bell studies etc), but still.... could they beat the likes of CMM for the first time ever... (yes.. it's a strange comparison, but.... it will hopefully illustrate to the market that not just the lowest cost producers can make money).
(20min delay)
