The future of Victorian Gold mines depend on whether the gold rumored to lie deep underground below the goldfields of the 1850's really exists and is mineable at a reasonable cost. If any mining company can be convinced thus, then PSV and BDG are cheap and easy takeover targets. Given location and available infrastructure, it would seem a tempting target. However the lack of interest from the big boys indicates they have already decided that the gold in mineable quantities is a myth.
South African mines regularly mine deeper than what is envisaged at Bendigo so new technology is not required, just the will to do it. No one seems willing to take on the task. I don't count SBM as a proven miner in this type of environment. Now if Barrick where to buy in ....
Having said that PSV is a viable mine but unless POG rises or new discoveries come online it is hard to see it returning to the 30 to 40 cent range it usually inhabits.
My estimate is a return to 20 to 25cents in the next few months so there is a reasonable return there for the bold.
PSV
perseverance corporation limited
