I've just been thinking about the difference between DOM and...

I've just been thinking about the difference between DOM and CTO's mineralisation style and why the development of DOM seemed to be both easier and quicker.

CTO and DOM are a worthwhile pair to compare ..as CTO is expected to have the same low costs (AUD$350/oz) at the 100,000oz/annum rate, which is the rate DOM is presently producing at.

DOM has doubled CTO's market cap despite having a tenth of CTO's resource because, as it's producing good profits at the 100,000 oz/annum rate... whereas we all know CTO is plodding along.

And here's why i think CTO is taking longer ..

I think DOM has 3 very long parallel shoots with good widths, so it's an easier mineralisation style to both chase and mine and more tonnage can be put through given the extra widths - with less stopes required compared to CTO.

DOM clearly doesnt need to develop as many stopes/ mined tonnage.
Plus the mineralisation is virtually straight ahead .. less figuring out.

CTO has to chase smaller/narrower reefs and open up many more stope faces and added to this it has to figure out how to locate the decline and blend from many different stopes to get a consistent ore.

So although CTO starts with higher grades at 13 g/T, there will be dilution with the narrower veins and more development - with the result that the grades will average 9g/T .. which is similar to DOM's head grades.

But CTO is in a town centre and has the power connected, with all the infrastructure available.
CTO's costs will therefore be as low as DOM's, maybe a tad lower.

Also CTO will ramp up to 300,000 oz /annum at some stage .. and be 3x as profitable as DOM, from a much larger resource.

So i hope this explains why we look at DOM in wonder at this stage and think why we cant be at a similar stage production wise or be as fortunate as them in having competent management..
But there could be a geological explanation for the delay.

We might be judging CTO's management harshly.

But then again the CTO management has overpromised on the production side.

I think we will get there (the 100,000 oz/annum stage for starters)..but it will take a little longer from a gelogical reason.