Hi Matt, I don't think they are looking to fast track Gold. Pass...

Hi Matt,


I don't think they are looking to fast track Gold. Pass is definitely the priority now & should be, given it could generate $50m-$100m/yr in Profits (11-22c/share).


Making PASS the priority actually complements Gold being "slow tracked", because to start Gold Production the Heap Leach Pad needs to be cleared (at least partially). Fast tracking Gold means clearing the HLP (6m tonnes) at a cost of approx $500k.


"Slow tracking" Gold to start in 2-3 years, saves the $500k Capex because the HLP can be sold off as road base & gravel to make money rather than cost money. It also allows a focused approach to PASS and backloading of HLP material, a competitive packaging arrangement with PASS to save money for NAGs clients.


The HLP material is worth about $70m or more being sold off (about 15c/share & over 4yrs thats about 4c/share/pa). Gold Production is probably only going to produce a profit of about 4c/share, so it can wait. I can't believe I'm saying "only" 4c/share.

So Matt, I think your wishes will be similar to what management is planning in my understanding, except that they will probably start Gold in 2-3 years time.

Current Australian Gold Price of about $A1700/oz makes production very profitable with costs around $650/oz & I'mnot talking about Bonanza strikes which are oie in the sky at this stage IMO.