Ann: Sandstone Feasibility Study, page-108

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jamesabbott

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24/05/21

20:09

Post #: 53383638
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Originally posted by m0ngy: ↑

I am not a holder but watching closely. IMO the problem here is that the existing plant is not a good match for the resource.
There is another much cheaper path to production available to miners looking for a low Capex route to production is well worth exploring further.
Classic Minerals has a JORC of 8.24 Mt at 1.52 g/t for 403,906 ounces of gold (and a lot of that is inferred rather than indicated). MDI's JORC is 7,38 MT @ 1.2g/t for 265,100 oz au.
Mid last year, Classic bought a Gecko plant with 30 tph of capacity for about A$4m. This plant was factory produced, trucked to the site and assembled.That is a very small plant by industry standards.The Gecko has now been commissioned and will produce about 15,000 oz au PA. The little 30 tonne per hour (tph) capacity Gecko (below) is cheap to run and scalable to a Gekko Python size plant with a processing capacity of 250 tph and may be further scalable to double that capacity.
Seems to me that MDI could get into small scale low Capex production for around $8m versus initial capital costs of $36.6m using the old mill on site.
Cash plus the sale of the exisiting plant would enable MDI to self fund a mine restart. The Gecko could deliver a profit of around $15m PA used for further exploration and eventual upscaling to the Gecko Python, all without a CR.
IMO a low Capex route to production should have been included in the FS

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sounds interesting. I have not heard of many 'micro' plants like this, do you know if this is common in ASX listed small cap miners?

MDI Price at posting: 10.5¢ Sentiment: Sell Disclosure: Held
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Ann: Sandstone Feasibility Study, page-108

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Ann: Sandstone Feasibility Study, page-108

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