Where they went wrong was not understanding the first rule of gold mining and development, effectively mining 101 that new undergraduates learn at the age of 18 years of age in the first month of their university course.
So who in their right mind, goes and spends $80 million dollars or more on refurbishing a huge 4.5 mtpa gold plant, and employs 2,000 people to run it, when they DON"T even have a gold RESERVE ?
To do so, borders on mining and financial insanity.
When they bought the project, they should not have even considered refurbishing the plant, but left it on care and maintenance for a year or two while they drilled up a VERY CONFIDENT Reserve of high grade and significant volume that was easy to get at, or at least, was get-able in some pre-prepared way, open pit and underground, before feeding one grain of dirt into the plant, or spending a dollar on the plant.
What were they thinking?
Gw
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