Ann: Trial Mining Permit Received for Old Pirate , page-2

re: Ann: Trial Mining Permit Received for Old... Very positive news- again.

“Previously the Company advised that it was required to hold the gold product from the trial mining in secure trust until the Mineral Lease was granted. ABM has now received notification from the Department of Mines and Energy that the gold product from the trial mining can be sold immediately by the Company to cover the costs of the work.
The authorisation to conduct the Trial Mining from the Department of Mines and Energy and the Central Land Council allows ABM to complete the bulk sample under an exploration lease.”

15tphr for the pilot plant is at the top end of guidance.

Exploration to continue through stage1 trial mining and 2013 field season has already begun.
We now can also look forward to exploration news as well from here on.

Trial mine ore to be processed in July over 1 month, just about in time for the expected ML;
“The Company is aiming to conclude the Mineral Lease application early in the second half of 2013 and around the time Stage One Trial Mining is completed.

Pilot plant upgradeable to 150ktpa (stage2) on receiving ML;
“The Processing Facility will be able to process 150,000 tonnes per annum, requiring only minor upgrades to the Pilot Plant to improve efficiency.” (very low cost).
Stage 3 to 300ktpa (subject to stages 1 and 2).

“The mineral resource estimate (top cut 300g/t refer release 04/02/2013) in the top 30m is 420,800 tonnes of material averaging 10.36g/t gold for 140,000 ounces
of which the Indicated Resource component is 286,300 tonnes averaging 12.15g/t gold for 112,000 ounces of gold, representing approximately 4,500 ounces per vertical metre.”

This announcement should rule out any talk of any need for a cr.
They are also talking about studies for integrating not just Buccaneer but also Hyperion.

I expect a strong re-rating from here on this rapidly reducing risk profile.