small cap big prospects, page-7

As usual finicky, your post is sensibly cautious. I don't know how much HEG will need to spend to ramp up the milling operation from 50tpd to 100tpd. They will need more crushing plant in the form of a Symons cone crusher. I know their plant optimising design includes this piece of gear and my guess is they should be able to get a Symons cone crusher installed and operating for around $A2M. I haven't been able to check the figures but I should be in the right area.

As you say, another set of quarterly figures will tell us more precisely how the finances are going. My field is geology not finance and from a geology point of view they are doing exactly the right thing. They are zeroing in on the part of the ore bodies with a combination of high grade and wide mineralisation. They are driving along the ore itself and so keeping mine development costs down. They are optimising their treatment plant for increased gold recovery and decreased cost/oz. With its coarse, high grade ore, HEG is a low cost producer. The quarterly should give us data on this parameter as well. My guess is in the range of $A300 to $A350/oz at the current grade of 1 oz/t.