Vertigo, Norton sounds great value and great grades near surface, wish the company had bought it two or three years ago and not spent money on granite castle which is a more marginal economic wise proposition, but not to be.
100,000+ ounces when sold is over $130 million dollars. Will it cost that much to mine? I would doubt that, but I have little knowledge of the mechanics of gold mining and the chemistry of gold ore processing. And we have seen very little detail to date from the company, perhaps we await the inhouse scoping study.
At $1 million capex, would we get a very high output ore mill? 20,000 tpa perhaps at 4 tonne to the ounce of gold equates to 5,000 oz p.a. II know they could use some local earthmoving contracters and subcontracters but that all cuts into the profit margin i.e. higher opex sacrificed for lower capex.
We could have news of the Norton scoping study soon, need something to counter the sp sell off.
MNM Price at posting:
1.4¢ Sentiment: Hold Disclosure: Held
