They undertook a trial sized operation and had plans for a much larger production sized operation. They never paid the fees to the regulators for those plans and they weren't implemented. What we see on the ground and what TG6 is drilling is the ore put through that trial so it has a grade that is reduced by what-ever the trial recovered.
The laterite ore within that trial was estimated to have a grade of 1.85g/t:
If the leach operation took 70% of the gold then the pile is at ~0.56g/t
If the leach operation took 60% of the gold then the pile is at ~0.74g/t
If the leach operation took 50% of the gold then the pile is at ~0.93g/t
If the leach operation took 40% of the gold then the pile is at ~1.11g/t
If the leach operation took 30% of the gold then the pile is at ~1.30g/t
Given there was no production leach pad (i.e. no profit in doing so), its most likely they didn't get 60% or 70% recoveries. The recovery rate could be 50% or lower. This puts the residual grade that's there well into the grades that is commercial to toll treat.
TG6 Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
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