Just an edit post. Didn’t proof read this post. Got a bit...

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Gazzajohn

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24/10/20

06:14

Post #: 48351436
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Originally posted by Gazzajohn: ↑

Yes MISt, solid report. Tonnage through the mill increased, but alas the grade remains stubbornly low despite the promise in the June Q report that this would increase. I’ll give management the benefit of the doubt that it’s still transitional issues that’s causing this shortfall.
With KOTH underway we are turning our attention to Darlot. Some great refinements going on here. If the forecast 20 percent increase in tonnage is achieved we will be heading for the 150k oz area, assuming that we can get those grades back to above 3 g/t. Next question is where are we going to get 120 to 130 million tonnes per year. In my opinion we will have to introduce another two significant sources of ore, besides Great Western, to achieve potential. Considering that this forecast increased capacity will be available by June next year it doesn’t give much time to get two more open pits up and running. Cable and Mission looks a contender with some great shallow high grade ore. A new JORC declaration that’s in the wings should shed more light on this.
Another one that I’m keeping an eye on is the CIO (registered on TMX) Endeavour prospect. Again drilling to date has indicated shallow high grade ore. Interestingly CIO earned a 51 percent management right over this lease through a farm in agreement with Barrick Gold. Gets a bit messy because CIO claims they have now earned 70 percent management rights through extra spend. Unfortunately for CIO Barrick sold just before the spend and it looks like RED will only recognise the 51 percent right. Negotiations are ongoing. Watch this space.
There’s also interesting activity going on just east of Darlot by G88. Still in early stages but worth keeping an eye on. I Like the look of this so have just bought a decent slice in the action.
TMX are also increasing activity around Great Western through their recent purchase of the Wilsons Patch lease. Gives them a lot more latitude to find an extension to Great Western. And they are starting to look hard after being cashed up through the recent sale of GW.
A lot of moving parts going on outside of the RED/Darlot exploration and development program. Exciting times ahead.

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Just an edit post. Didn’t proof read this post. Got a bit carried away with the annual tonnage through Darlot. Should read 1.2 to 1.3 million tonnes, not 120 to 130 million tonnes. Freudian slip.

RED Price at posting: 30.0¢ Sentiment: Buy Disclosure: Held
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