Hey Wassa, no need for an apology.
I am sure if you had had more sleep, you would not have posted on the WGX thread
Cheers for the reply. Like you, at this stage, I think 500,000 is quite optimistic, albeit the drilling , infill and extensions to date have been to the upside, if... it continues, and if it goes deeper and... the biggest question, does it (or even multiple) veins extend to the west then... anything is possible.
To be fair, GCY has said nothing about any actual MRE goal etc. So... all we have at this stage is a few small brokers and some smart cookies on HC.
Well done on heading to the AGM. Much respect, though my life does not really allow for such adventures (though I wish it did!).
I think your post mirrors my thoughts, even though I rile against it at the same time. I want GCY independent and ready to ride the wave (gold sector ups and downs), however, I also want to protect my capital. It's a tug of war in my mind... capital protection, vs upside, vs.... downside.
Right now, on balance, I am swaying to capital preservation (on the basis of what we currently know - drill results, production rates, grade etc).
Melville was a solid option with reasonable diesel prices, I am less confident right now. I do note that GCY has not mention of options like Archie Rose getting a mining permit (not that it has a reserve), nor any of the other prospects/deposits that were planned to have MREs delineated. I know that Never + East Wall are the key priorities, but, small deposits are potentially still very important over the medium term...
Never Never is a company maker, but... its a big plant and needs baseload ore. Big Bell would almost fill 50%... couple that with Never Never U/G which could potentially be double Big Bell, and... you have a mine that will print money. Big Bell ore is already trucked 50-80km. Dalgaranga is no different. Big difference is the plant is 50% cheaper per ounce.
I guess questions for SL...
* are they full staffed?
* are they stripping both East and Gilbeys North as of tomorrow?
* is having the new sources of ore going to enable the plant to be filled with the best ore over the short/medium term?
* Tailings dam lift - any way to reduce the upfront capital on this? Use Sly Fox?
* Progress of de-stacking the East ramp? (important, for GMZ ore sourcing
* To put it bluntly... whilst the quarterly says that costs will be similar to the Sept Q... I just don't think GCY can allow that. I don't know if everyone (management down the maintenance team, get on the shovels and dig), so... are they going to be able to do better than the Sept Q?
In the end... at some point, dilution actually does mean much less of a return, FFR diluted us by 33%, we have a capital raising recently, which diluted by 15%. So.... SL has made it clear, he will do a deal without any ego involved, is that still the case...?
Cheers Wassa!
(20min delay)