The Mt Monger project is behind Kalgoorlie, they have an underground and open pit, I understand the open pit is very narrow vein high grade but still makes a profit. I think it was originally owned by Integra but Silverlake took them out. The underground is called Daisy Milano, I worked there years ago, I understand that mine is still going strong for the foreseeable future reserve wise.
The Cue operation consists of a couple of different pits. They were planning to go underground but I think this was put on hold for some reason, maybe waiting for a recovery in gold price. From memory the pits on Silverlakes Cue lease are narrow vein that follow a foot wall structure down and all different pits mine the same structure. I did a small contract there over 10 years ago so the memory is a bit foggy.
Reading between the lines Silverlake look to need to add quality ounces, their recoverable resource is most likely smaller than reported, I base this on other gold mining companies that I have worked for mining previously mined leases struggling to keep ounces in front of them, irrespective of reported reserve. This is only speculation but its always tough to mine old areas as the cream is usually taken out and both Silverlakes areas are historic large scale mined areas.
The only reason I could see Silverlake not taking out MYG is they maybe struggling for cash, same as everyone else in a similar boat, but saying that anyone interested in Gold mining with cash could get a very cheap quality asset in Deflector for a bargain price.
I just get the feeling that JG moving along might be the catalyst for new direction and deals.
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MYG Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
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