You're absolutely right about the low grade 0.8gt ore. It's barely economical by itself. When they mix it with some decent grade ore, the low cost gas run plant will print money. The new MD looks like a very sharp mine geologist specialist. In the couple of months he's been there, he is already finding tons of higher grade ore within a stones throw from the plant. He is making the previous administrations of GCY look borderline incompetent.
Who else would be interested...
Geographically GCY is surrounded by stranded assets and midcap miners.
SLR's Deflector project's close to GCY's Yalgoo deposits and about 120km south of GCY's plant. RMS is currently profitably carting ore over 300km. Even if SLR fed 20% of their high grade UG ore into the plant, GCY would increase ounces per year production by 100% ( 500,000SLR ore x 5.5gt = 2,750,000g / 31 = 88,709 oz)
RMS Mount Magnet project is approximately 65km away from GCY processing plant. RMS have huge stockpiles of ore. Their 1.9mtpa plant simply can't keep up. These stockpiles could easily be carted 65km and processed at half the price at which the Checkers mill could do it, and with zero mining costs. Same story as before with SLR, if RMS added 20% higher grade UG ore to the GCY plant it would double production output.
MGV/EVN The JV Cue project sits a touch over 50km away from GCY's plant. EVN is spending 16 million dollars on the exploration farm in agreement. This will give them an interest of 75% in the JV. With a 600,000oz resource at over 3gt, EVN could substantially build on this MRE. EVN is endowed with very deep pockets!
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