Refractory Gold, page-9

Thanks for posting this VegasGM:

Even the sceptics will be impressed with Refractory Rob’s detailed knowledge of gold processing and the operation of Australian and international mines. The discussion around why a small no of refractory gold projects fail eg Wiluna is a cautionary tale for Rox that Rob has looked at very closely as an outsider and insider. Wiluna highlights the importance of getting everything right from the beginning (PFS) rather than forward plan on the run as a mine develops.

Producing bullion rather than a gold concentrate is the focus for Rox now. Are the higher capital and operational costs to produce gold bullion a profitable trade off compared with gold concentrate processing?

Rob makes the point that even a small increase in gold grade more than offsets higher Capex and Opex.

IMO Youanmi gold grade of around 5g/t Au in the mining plan coupled with a price of gold that will be at least $500 higher than in the 2022 scopng Study should allow superior profitability using Biox despite a higher Capex and Opex.

Key takeway: Worth delaying the PFS to get the metrics on the Capex and OPex.

The point about getting things right also extends to the financial side of mine development as shown by the collapse of Calidus last week only months after raising $22.5m.

It really is a jungle out there and CFO Chris Hunt will be taking note.

@smartdude: my estimates based on Biox processing and a larger mill, new UG infrastructure, inflation etc.

UG development $50m

Processing facilities $120m

Site Infrastructure $10m

Water management $10m

Yes the Capex should be under $200m or very close.