Spoke to one of the staff yesterday he said for security reasons he would not divulge the mill ( I found that comment a bit strange) but it is near Kal as we already know . They are stockpiling ore from mullick heaps (old tailings ) to conserve cash as they dont need to do open cast development mining so just really a loading and transport cost involved They start trucking the ore to the mill today the mill will take a 5000 ton batch of ore a time with no bottlenecks. He did not know the grade of the initial ore(mullick) but the quarterly shows to me about a 4 gram a ton ore which seems profitable on face value he also did not know the recovery but confirmed the tailings were previously milled through a gravity circuit where as the CIP circuit to be used will theoretically extract more Au. Actually he said a lot about nothing just called me Sir all the time which made me feel good. Within 10 days they will start mining from the first pit. I got the impression the directors of the company are keeping a tight rein on management regarding spending and that all CAPEX would be funded from cash flow. Share price looks weak, considering resource and that company should start having an impressive PE within a year Market is discounting for managements inability to deliver on time in the past and lack of long term income. Looks a little like Ramelius did 8 months ago.
NZC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
