Met-work has been scrutinised thoroughly and will be managed with a basic float regrind processs (but only 5% of total original mass to be re-ground not the whole tonnage as some wrongly interpret) to acheive 85%+ LOM recoveries for Sulphides. They can go upto 90% plus with partial oxidation. And can get 98% with a final Albion treatment if desired, but don't think they'll need it given the grades are above average (especially the high grade component close to 3g/t for 1.6mill oz)
Batie west Oxides are 95%++ recoveries with conventional processing and no regrind , hence why they are chasing more , to delay float regrind curcuit and save on $30-40million expected cappex spend upfront....
So project start-up cappex looking around $230mill + contingencies ?? will be near that figure I assume... Float regrind comes in after 3-4years and paid for out of free cash flow . No debt , no dilution for this expansion = Smart move
Sure, it would be better to have simpler met , but its not a "fatal flaw" what so ever. Centamin and Centerra are using the same methods with simular recoveries and have cash costs of under $900/oz (both with lower grade deposits)
Unfortunately Kitto and co have had limitted success explaining the MET-work to most . Others just don't care to listen and prefer to be market lemmings instead of thinking for themselves.
So PK's chasing the oxides to make the sulphides a moot point. Its the only way if the market is not willing to accept what he's been trying to explain for over 2 years now.
Always remember , the stocks that are the most misunderstood , are always where the most money can be made ...
If you know something the market doesn't understand , you have an advantage. Don't waste it.
AMX Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
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