Anticipation of Tick Hill Gold Results, page-4

Found this interesting from back when Superior owned Tick Hill.

9th March 2016
In another boost for the Tick Hill Gold Project, Diatreme Resources Limited (ASX: DRX) announced today that a favourable scoping study report has confirmed the viability of a standalone operation processing the tailings resource. The study follows the recent announcement of a maiden Mineral Resource for the tailings material, estimated at 630kt at 1.08 g/t Au containing 680kg (22,000 troy ounces) gold (refer ASX announcement 19 January 2016).
According to the study prepared by external consultants Metcor, Tick Hill has the potential for a 20-month operation processing the tailings through a standard CIP/CIL circuit at the historically rich former mine near Mount Isa, Qld.
Commenting on the study, Diatreme’s CEO, Neil McIntyre said: “Even using conservative gold price and exchange rate assumptions when compared to current prices along with stage appropriate capital and operating cost estimates, the study shows Tick Hill’s potential to deliver a commercial return. If we apply the current Australian dollar gold price of approximately $1,700/oz, the project could be a highly profitable operation for the benefit of shareholders.”

The tailings dump may be small and of low grade but it’s interesting all the same. There’s 680kg of gold in there, at surface. The current gold price is  around $2200/oz therefore $70k per kilogram meaning that the gold value in the tailings is around $47m. While it’s not the primary focus you’d have to wonder if it’s worthy of review.

High grade extensions to the main mine are obviously the focus for now though with first results from Tick Hill likely just over the horizon.