It's been difficult to remain patient for so long knowing that the high grade gold in A1 has been so close and yet so far for quite a while now, but having been investing in mining stocks for over 60 years, and having been involved in mine safety many years ago in Africa, I've learnt that the old saying "more haste less speed" is usually very appropriate in mining.
I'm reasonably confident that they will be into the higher grade A1 ore within a couple of months, and certainly by mid year, and in the meantime they will be producing income from toll treating at the Maldon plant (and I expect that the toll income will become very significant, as processing options are increasingly sought after by other producers who can't afford or can't get permits for their own plants).
The prospect of the Union Hill mine re-opening in the relatively near future is perhaps creating even more interest than the A1 development. With the 2.4km decline already in place at Union Hill and much of the infrastructure in good condition, the re-opening of the mine should be achievable at a moderate cost, and historical evidence points to there being some bonanza grade gold waiting to be found at both Union Hill and Nuggety Reef.
KAU Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
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