Previous operators were hamstrung by a dreadful gold price and simply bulldozed, then heap leached the oxide material - and not even all of that seemingly.
Not sure how much metallurgical work the current team have done, nor how refractory the ore will be...
Clearly, they're planning to make a concentrate rather than dore.
That they've suggested they reckon only 250k oz is needed for a stand alone operation (with capex circa $25m to $30m), they must feel pretty confident about the processing route?
The Scoping Study will tell us more.
For the bean counters (and I'm partially one), even a 20,000 oz a year (using gold of AUD 2350/oz) would see revenues per annum of $47 million.
There's your capex paid off in a year or so if costs (loosely) are 50% of revenues....(which is a wild guess but....).
The high grade stuff being turned up is the real wild card here.....but either way, should be a decent cash cow imo.
GNM Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
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