goode doogs

http://www.apexminerals.com/reports/AXM30March2009(KGoode).pdf

make you own minds up but worth reading atleast twice.
i think most AXM'ers will be happy with this report and even happier with the inromation it provides them


Target price 50c

ERA have forecast 142k ounces from production in FY10. They beleive this can happen with Wiluna ore alone.

Looking at the historical quarterly recovery chart it looks like Apex will achieve higher % recoveries and higher output of gold than most previous owners have achieved.


key statements;

Wiluna has significant upside potential as our modelling does not include any other orebodies on the West Fault Structure, the newly discovered orebodies / ore zones connecting between West Lode & East Lode, plus the fact that each orebody appears to have more than one mineralised lode.

AGC extended the Calais mineralisation as shown in the mine takeover position in Figure 1a, and Apex has extended it a significant step further. Apex has so much ore just in the East Lode and EFS area around Calais to solely provide Wiluna with at least a 4-year life, without considering any other satellite assets, yet alone the untested upside potential within the mine itself.

Interestingly, each company that has taken over Wiluna has assumed that it is refractory, and not checked either by depth or host rock (often associated with basalt, not necessarily with dolerite), despite the increasing quantities of free visible gold in drill core with depth, the fact that West Lode has changed from stibnite to arsenopyrite, and some orebodies’ mineral zonation does change with depth. AXM are going to check.

West Lode and the WFS have been barely touched by recent exploration. Crispin was discovered by AGC from the extended drilling 200m further on from Calais and basically then stopped. Calvert has been identified, but does not appear to have been extensively drilled. The result is a huge “hole” in the drilling/orebodies as shown In Figure 11a, very reminiscent of what the EFS looked like before Calais was discovered.

However, applying a treatment rate of ~850,000tpa, it was not difficult to model and schedule an 8-year mine life for Apex using the indicated and some of the inferred resources at Wiluna, and allow for part of Wilsons to be mined from 2013. This model has not factored in anything for the “Other East and West Lode”, “Happy Jack”, “Lone Hand, Adelaide & Moonlight” resources in Table 1 on page 5, nor for anything else on the West Fault Structure, yet alone the whole Moonlight structure. The orebodies being mined are open on strike, mostly in a southerly direction (such as Calais 50 and 100), and all are open at depth, & little exploration has occurred at depth below the old East & West Lode workings since the mid-1940s.