Hey BPP,like you, I am looking forward to seeing if the...

Hey BPP,
like you, I am looking forward to seeing if the exploration that GCY has finally been able begin after many years.
The MD has tried to make the point repeatedly, that the company has not really done any exploration for almost 6-7 years, due to the huge focus that went on getting Dalgaranga into production.

Many moons ago, when I contacted the company regularly, the though process was, that when Dalgaranga came up for sale, they viewed it as a much quicker path to production than Glenburgh, due to a plant having been there in the past, plus, Glenburgh is more remote etc (though, it already has a mining lease on it).

So... the brief version. Dalgaranga came up for sale. GCY snapped it up and simply put Glenburgh on the back burner.
There was some drilling done on and off a few years ago, which saw them actually increase the MRE to over 1m ounces.....
However, past GCY MRE were basically crap, and the new MD tore the numbers to shreds last year, and halved the MRE (Dec 2020 release)

Grade sits at 1g/t due to a mix of OP/UG ore. 85% of the ounces are M&I which shows that they basically stripped away everything they thought was questionable. Now its a matter of more drilling to build the project up again.

I guess Glenburgh is now scarred from the grade issues seen at Dalgaranga. This will hopefully change once higher density drilling occurs to prove that the ounces are indeed there.

In my mind, its a free option on a higher POG. At $3k AUD, the project becomes something valuable. Though its current production scale won't excite the market, I think it would easily get expanded to 100k p.a, if enough capital is spent exploring what is still a greenfields discovery, rare as hens teeth in itself! As you say though, capex would be increased. I think it would be similar to CAIs project. $110-120m. However, with a POG almost $1000 AUD higher, the economics would still be favorable. I think above all, they need more open pit ounces, to ensure base feed for the project, banks will like open pit over U/G too, especially, after DCNs misadventure.

I will be watching HRZ to see what sort of metrics they achieve for their low grade project, which I think, will end up looking similar to Glenburgh (though they have easier access to employees and infrastructure).

I wonder if GCY has ever had any interest to do some sort of J/V with the project. Though I suppose, with zero value being accrued to it currently, better to keep it.

Good luck to all holders.