From the looks of it, DUO are claiming that they are looking into using Reeds as a contract processor. ie DUO would deliver a pile of ore to Reeds, Reeds will do the extraction and get a set amount of money for each ounce produced. This is a pretty standard kind of job, and there is a place in the goldfields that already does this, though their name eludes me. They normally only do it with pretty high grade stuff (often underground) though, since the ore movement costs go up pretty high if you have lower grade material(it also works if you have a concentrator at your actual minesite).
Given that DUO has some extremely negative comments about it floating around, it possible DUO is just floating a very very general idea/talk they had with Reeds in order to jack up their horrible stock price. No comments on that...
That said, give the mill appears to have a higher capacity than Reeds plans to use in the short-medium term, it is conceivable that Reeds use their mill as a contract mill at some point. This would let them campaign their own throughput in case they are limited at the pitside. This is a long way out though.
NMT Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
