Ann: WPG to proceed with South Australian asset a, page-3

re: Ann: WPG to proceed with South Australian... It's not happy days yet. Here are my thoughts:
1. Red dome pit required a gold price of around 1700 to break even. Why? Because during the FS, metallurgical test work concluded that the copper would not be recoverable. This copper accounted for 25% of revenue and was scheduled early on hence having a greater negative effect on NPV when left out.
2. Red dome underground. The underground project requires the pit to be drained...all 25 giga litres of it...that would take at least 1-2 years of pumping into a DAM to be stored and cannot be discharged into creaks.
3. Mungana Pit. Small resource that doesn't justify the cost of the plant, resource too small but handy to supplement other ore.
4. Mungana ug. This is where the hope is. This, together with mungana pit can supply the existing plant. Only problem is that the UG decline is flooded to the brim. All equipment and ug infrastructure was stripped when kagara left. This has serious geotechnical implications on the slc area.

All this is available in their scoping study and pfs reports.

Moving forward I think MUX should hold onto the project as is and wait for the gold/copper zinc...price to recover.

They have $4m in cash which I believe should be used for exploration in the region or the Nyngan lease.

I've also noticed they are burning quite a lot of cash on administration....

All IMHO, door blah blah blah...