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52.0¢ egan street resources limited

Good thinking Davisite but that is quite a long way to truck. We...

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jogo

3,596 Posts.

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30/09/19

19:19

Post #: 40647501
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Originally posted by Davisite: ↑

Now that the market has spoken and basically said no to the SLR TO, we should start to look to the future. Leaving aside any board changed, if EGA is going to go it alone a toll treatment option looks best. There are plenty of mines in the area within trucking distance (lets say less than 400km), but which one? Deflector is running at capacity and is set up to deal with the copper rich ore of Deflector so doesn't look great. SLR would most likely want to charge EGA a fortune for toll treating anyway.

One option I would like to throw out is GCY Dalgaranga Mine. This is only 264km by road from Rothsay. GCY has a near brand new plant, but has basically no gold (0.8g dirt). It is currently being run by the administrators and the creditors who have zero interest in running a gold mine. A partnership with GCY trucking the high grade Rothsay ore to Dalgaranga might solve everyones problems - EGA would get a good toll rate, GCY would have a high grade of ore, and the banks could get rid of their ugly redhead stepchild. Win for all shareholders.

Thoughts?

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Good thinking Davisite but that is quite a long way to truck. We need some ball-park costings.

EGA Price at posting: 30.0¢ Sentiment: Hold Disclosure: Held
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