Such a massive read. I haven't had time to read it all. No surpise that the cut-off was lower than NXM's (see old post of mine https://hotcopper.com.au/posts/66154315/single). However, 0.3g / t is slightly lower than expected - the beauty of heap leach.
The 'highlights' on the first page are such a great overview. Particualrly that the fifth point "Open pit mining optimisations have been undertaken that support the MRE based on both heap leach and CIP treatment methods."
For @Green_Demon and others who are going to throw shade at the MRE; AP wouldn't have put it out if he didn't truly believe in it. The guy is no bullshit. This is his company (he owns 30-40%) we're just along for the ride.
Heap Leach Cut-off grades are the minimum metal grade at which a tonne of rock can be processed on an economically viable basis. The cut-off grade will typically vary depending on a number of factors, such as the price of the metal in question, the costs of extraction and processing, and the particular characteristics of the deposit (e.g., the grade of the ore, the depth of the deposit, etc.).
In the context of gold heap leaching, cut-off grades can be relatively low, because the process is generally more cost-effective than traditional hard rock (mill) mining. Typical cut-off grades for gold heap leaching operations can range between 0.3 to 0.5 grams of gold per tonne of ore, though this can vary. For example, in lower-grade deposits, the cut-off grade might be lower, while in higher-grade deposits, it might be higher. The exact cut-off grade for any given operation will depend on a variety of factors and may change over time due to factors like changing market conditions, operational efficiency, advancements in technology, and so forth.
As for the benefits of the heap leach method, there are several to consider:
Cost-effectiveness: Heap leaching can be a lower-cost method of gold extraction than traditional milling. The process requires less capital investment and has lower operating costs.
Low-grade ores: Heap leaching is particularly useful for processing low-grade ores that would be uneconomical to process using more traditional methods. This can also lead to a longer mine life, as previously uneconomic portions of the resource can be processed profitably.
Simplicity: Heap leaching does not require a significant amount of infrastructure, which makes it suitable for remote locations with minimal resources.
Environmental Impact: Although heap leaching does use hazardous chemicals, these can be contained and managed. Modern heap leach sites generally use lined facilities to minimize the risk of any leachate escaping into the surrounding environment.
Milling
Just to touch on this though, have a look at the cut-off grade table oon page 14. There are still more than 70,000 ounces at a cut-off grade of 1g/t. So even if you wanted to be highly conservative, and consider that they won't do the heap leach method for some reason, it is still well and truly an economic resoruce.
Looking forward Lots more reading and analysis to do, but so far it looks like a great MRE, highlighting a fantastic resource and strong prospects of it being rapidly and effectively monetised. Looking forward to:
seeing AP do an interview to talk through this;
the scoping study;
financing options;
monetisation; and
future drilling and exploration throughout Mulgabbie and Patricia.
Couldn't be happier to own this stock right now.
OZM Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
