this seems to be pretty marginal at best. it might be an idea for holders to look at ngf, who have the paddington ground - which is all part of the bardoc shear - which must be where axy have their ground. in recent reports, ngf mention total cash costs (and they also give the grade of the orebodies). even if axy could convince ngf to toll treat the ore, then it could be, that there is no profit margin (cartage would be about 20c, per tonne /kilometre).
sbm, stopped treating similar grade dirt, from open cuts at southern cross (caveat emptor - let the buyer beware)
this is what ngf recently reported
"Total cash costs per oz for the Quarter were $1,214 per oz compared to $1,361 per oz in the previous quarter. This reflects all cash spent in the Quarter at Paddington (including costs of exploration, pre-strip and sustaining capital works) other than large capital investment projects.
hey - but that is the cash cost - and forget about amortizing the capital cost...ok - other factors come into play - the following from ngf
"During the Quarter, 750,693 tonnes of ore grading 1.50 g/t at 93.9% recovery was processed to recover 34,087 oz of gold."
volume gives economies of scale - but when ngf mention cash costs, they overlook the capital cost of the plant. in all fairness, rabbit, you are probably correct with your comments. it would be interesting to know, how much ngf, might charge to 'toll treat" the ore. if ore is 3 gm/t - then it is worth trucking a few km - but at the grades that axy have, then trucking is not an option (for more than a few km).
to build a stand alone plant, one should look at igr, and the relevant costs - and igr are looking at a grade, which is considerably higher than what axy are sprouting.
the market is correct with axy - which is a "very marginal deposit" - but could be worth something, if gold prices were a lot higher
AXY Price at posting:
6.9¢ Sentiment: None Disclosure: Not Held
