new mill will be 50-70million, depending on demand/delays. However, AAG would be wise to consider toll treating ore at Magnet intially, and when they enough cash, consider buying a mill. Alchemy is considering this scenatio at their Hermes project. I believe toll treatment is a good start option as it reduces inital capital expenditure to a few million for site offices and camp accom. Also, the location of Fingal to the hwy, as well as the distance between Cue and Magnet is not considerable, and its bitumen! I have seen other mines haul ore longer distances over dirt roads and still be profitable. The problem is getting an agreement to toll treat. Plutonic for example is an operating and hungry plant, it needs extra mill feed and toll treating ore is desired. The Magnet plant is ?not operating, so is there a need for ore? The only strong negative against toll treating is that is does increase the open pit cut off grade, but should only be slight, say .1 to .3 g/t. Nothing serious, but enough to leave a little ore behind.
AAG Price at posting:
19.0¢ Sentiment: Hold Disclosure: Not Held
