I would like to address for a moment the issue of 1.5M oz of gold in the ground.
this is a true fact... but it is in the neighhborhood of 1 gram per ton. At current prices, lets say $A1100, a gram is around $35. Trucking to the Focus mill is $17 a ton. You haven't paid to process it yet.. and you haven't paid to get it out of the ground yet....... so you can only make money at these prices if you have a superpit,or your own mill, which costs $80M. and if the price of oil rises again, you are seriously underwater.
If it was such a dunkshot, the price of the stock would be in multiple dollars. This is the simple and rational reason reason why it is pennies.
Andy Viner was very clever to find rich pockets that will work for now. But he won't get 80M out of them--- and in today's rocky market it will be very hard to have this financed.
They could install a ball mill for $3-$4M, and that will reduce processing cost, and they could find a mill closer that will reduce transport cost--- but that is why this is a crap shoot and not a dunk shot.
At $A2000 gold, of course all this changes. At $A700 gold it also changes....
Never forget that this is a speculative venture that could make you rich..... or poor.
MAT Price at posting:
19.0¢ Sentiment: LT Buy Disclosure: Held
