Thanks for the heads up.Link to the article (remove the spaces...

Thanks for the heads up.

Link to the article (remove the spaces from the URL)

https://www. abc .net.au/news/rural/2021-10-16/contamination-concerns-over-90km-wastewater-pipeline/100352866

Key points (as per the article):
- Mining company Regis Resources plans to cart contaminated coal mining wastewater 90km inland for their gold mining operations
- Regis argues the water is "stock quality", and that its transportation poses minimal risk to surrounding farmland
- Farmers and scientists are pushing back against the plan, fearing contamination

I appreciate the concerns of farmers, however I believe there will be too much pressure from Govt to get the mine approved and the cash injection into the region.

One area of concern however is the DFS has not been released yet, and as per Diggers and Dealers this year, the costs coming back are much higher than the company expected.

I know of 2 projects, which are located in WA, that have had a ~30% increase in cost estimates for the building of plant and other infrastructure.

I think with NSW opening up, with Vic soon to follow, the pressure will mount for other states to open up.

What will the increased freedom of movement mean for RRL in regards to McPs? I think they will be able to close out the studies.

I also think the 45% drop in iron ore, and the flow on effects for steel could help claw back some of the increases. Shipping costs are astronomical at the moment, so that may result in a blow out that wasn't accounted for previously.

This project has been a long time coming, and it feels like a perfect storm of adverse events are trying to keep it down.

In saying this, the value of McPs isn't really factored in to the share price at the moment, I would say 15% of actual value at a guess, so if the project was to continue to progress slowly and accelerate when conditions favour, then I think that would still be an acceptable outcome.

I think if McPs what to be put on a decelerated timeline, there might be a small drop in SP, but it should recover quite quickly, so long as production targets are hit.

Forecast is for 500k oz of gold for this year, as well as additional exploration at Duketon and Tropicana. Obviously the main upside potential is for additional ounces to be discovered at Duketon due to 100% ownership and existing infra in place.

It is still a strong buy at this price, especially with the depressed gold price at the moment, and the pull back on Friday evening (I sold some at $2.31, and have an order at $2.10)