The resource is the real deal, that's one thing I dont doubt....

The resource is the real deal, that's one thing I dont doubt. Apparently the mineralisation is unusually predictable. There was a really good article explaining this and a lot else, which I can no longer find to link to, but one small extract . . "The rarity and potential of this deposit is further enhanced when you consider that this deposit has not been disturbed by geological events or movement since the fluids containing the gold did their work carrying the gold up from the feeder source below. This is critical to an understanding of the predictability of this resource . . "
I suppose we'll only be certain of the good head grades after they been producing fully from stopes for a while, but the record of historical production is good support for current expectations.

This was a very rich gold field in the past and was not abandoned because the gold ran out. The field in the past was fragmented into small, low capitalised operations. I cant quite remember, but I think they also had the typical problems of the period with a fixed gold price, higher wages, problems of ventilation and so on with depth. I dont know without re-reading, but you get the picture: low capitalisation, primitive technology compared to today, stuff like that.

Modern day Citigold fell into disfavour because of the ultra slow pace of development and the hollow projections of the MD and chairman. They were seen as always rattling the tin, to the accompaniment of the latest revision of a cracking good yarn to rope the punter in. Each year the promised pot of gold melted a little further into the distance like when you take a paying tour towards a rainbow.

However the company eventually did get the drive down to the ore, they are producing some gold, and they do have a mill and plant constructed in much cheaper times than today. They have an operation that is not highly vulnerable to the price of diesel, which will become an issue for many companies soon. They have a large adjacent township for labour, accomodation, and services. They have a good operational management and skilled staff from what I can see.

The thing is, the Sept Qtrly to be released end of Oct, wont be announcing exciting gold production I predict, because the critical power upgrade only occurred in late August. The extra staff would not be very effective in the Sept Qtr either I shouldn't think. The December Qtr will show the full impact of all the electrical power they need, more manpower for 24/7 operations, more exposed stopes, and more heavy equipment. Underground laser ore sorter should kick in for the Dec Qtr too