Any thoughts on a nearby operating mill with excess capacity???
Here are some very very rough numbers.
Lets assume that the BFS calculated the cost of building a mill to be $75M. A timely purchase of a second hand mill could save them many millions.
Mining expenses should be similar. Grade now looks like it may have improved.
Haulage costs need to be increased if hauling to another mill. Toll treating the ore will also cut into profits. So that $15M from the BFS could now be $5 -$10M. Plus the $75M saving from building a mill. If the entire deposit was to be mined, toll treating could leave us with about $80M to spend on drilling and setting up Castle Hill as an owner operated gold producer.
Granted it is likely that if toll treating Catherwood, it is likely that it would be mined in dribs and drabs and much of the deposit would probably be left in the ground. This little patch of ground could save us from a long series of cap raisings and dreaded dilution.
PXG Price at posting:
15.5¢ Sentiment: LT Buy Disclosure: Held
