Topcall - I'll send my CV to Ampella this morning ! lol...
You raised two points of concern.
1. Low grades - The actual head grade in the first 3-5 years of mining (perhaps longer) will likely be from the higher grade componet which is above 2g/t (some areas are even higher). As for the lower grade halo , 1.6g/t is not considered all that low grade for a bulk tonnage / open pit scenario. Its actually slightly above average grade. (Kalgoorlie super pit is well below 1g/t and is mainly refractory ore)
2. Difficult Metalurgy - This is correct for a statistically insignificant part of the total ore body and an even less significant part of the greater batie west gold province. These ore components ,won't have to be touched for many many years [if at all??]. Semafo up the road has same ore type and produces 200k/yr at a cash cost of well below $800/oz.
If the gold is there and the project scale large enough , the experts will always find a way to extract it in a cost effective manner. You just need the scale , which AMX have got thankfully.
The market will quickly forget about tricky sulphide ores if/when more oxide style deposits are uncovered. Wardaradoo is looking like it has this potential + River crossing + Doumbema + many others...
They could be cherry picking cheap shallow oxide and transitional material at Batie West for decades before attacking the fresh rock.
THIS is a likely scenario imo.
AMX Price at posting:
59.0¢ Sentiment: LT Buy Disclosure: Held
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