win that plant was bought by NWR for $200,000 off Black & Co 7 years ago and has been insitu rusting since. $20million to get it going . The plant is a red herring
The antimony is a side show. the real deal here is the gold.
Anglo closed the mine in 1977 at a big loss because they stuffed up on reserve estimation bigtime it seems ( easy to do with very high grade reef systems) The old time mining professionals of high grade reef knew the only way to find payability is to " open it up". The diamond drill gives you the structure but very tricky with the grade. In fact to be confident on grade as an investor you need history, If you buy into a high grade reef miner you look at what the reef has done in the past on grade/payability and then make your decision. Ignore that history at your peril.
Virtually all the resource here is inferred. Not unusual. Same as Ballarat Bendigo , Charters Towers, say no more!
Anyway . Anglo opened the reef up and voila not payable.
Kiss ten million 1977 bucks goodbye. Ouch
worse the Blue Spec reef started pinching out at the end of the "proven" reserve block .
And then worse still.... At this point where is starts to pinch out the mineralised reef and rocks that formed the shoot were heavily fractured and to dangerous to channel sample the backs despite the very strong grade.
Forget it. This is simply to tough for the average punter. Even the pro wouldnt have a clue what is going on down there.
You know the only winner here is Craigside Company Ltd, the mystery 35% owner who gets a free carry from the punters to BFS
Thats the type of deal I like, but I am not Craigside so i am out.
Speaking of good deals I'm punting some of my profits into the SPP for CGT
Those guys just picked up Ballarat for $4.5million plus some bonds after LGL blew up $300million on it , including building a brand spanking new state of the art $40million gold plant. Looks like LGL gave up 120m from paydirt by my reckoning. No rust there.
NWR will rally, its a very high risk daytraders delight now
good luck to the daytraders. Investors look elsewhere.
NWR Price at posting:
8.9¢ Sentiment: None Disclosure: Not Held
