Its not all bad. Thought I would point out some positives about the Deflector project.
Below link to latest met work for Deflector. Its not the best result but not too bad. Once mining starts the process is usually improved as well.
Also the new mine plan is for far less oxide material as a result of bringing the underground into the schedule earlier and reducing the open pit footprint considerable.
There is significant potential for further high grade below current model. Check the drill results previous to the last dopy drill campaign. The bottom extension drilling was down dip under the current model. If its open which it may be mine life should be well past 10 years.
The Geraldton Port is set up for the half height sea containers for the concentrate as Sandfire used this shipping method. Plenty of options for the concentrate. Korea will most likely take it.
There is haul roads, basic camp, power plant, tailings dam and other basic infrastructure set up on site. Big cost savings.
Mine permitting is in place. DRM will probably have to resubmit some things like updated mine plan, explosives management plan and Dangerous Goods approval. Not over the top stuff.
The ore is hosted between basalt pillars and the ground conditions should be very good. This should reduce mining costs considerable due to limiting costly and time consuming ground support installation.
If DRM manage Deflector well they should have an excellent high grade asset for over 10 years. Not all bad. Hopefully both parties get a decent deal. I think MYG shareholders are at the most risk as they have no bargaining power due to outstanding liabilities with Sandstorm finance and inability to get promised finance.
Down side of the project. MYG Directors pissed away royalties to Sandstorm and currently owe Sandstorm for operating cash made available in advance. Also deflector has a small royalty over it (I think 1% of production) with another company.
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disclosure, no stock held in either MYG or DRM. missed buying MYG buy .001 just before the price ran up. very costly miss. good for any alleged insider traders.
DRM Price at posting:
48.0¢ Sentiment: None Disclosure: Not Held
