"Dependent on the exploration results there are several development options available to Laguna: �� Develop the resource. This would require the deposit to conceivably be in the order of 1.5 to 2.0Moz eq Au for an agitation leach operation. For a smaller resource a heap leach processing system could be possible. �� Enter into an agreement with a neighbouring company to jointly develop the deposit. Kinross would be an obvious partner as they have water rights and infrastructure in very close proximity to the deposit. �� Toll treat the ore. In our opinion this would be the least attractive option because of the potential problems associated with toll treating, such as the division of gold for non-batch processed ore. Based on our site visit we felt that in addition to identifying an economic resource there are two areas yet to be addressed by Laguna, these being access to water and development space. As the project is in one of the driest places on earth, access to water may pose a problem. Water is present, predominantly as ground water, but at this stage Laguna does not have access to this resource. It is possible that water can be sourced. However the question of cost is yet to be answered."
I doubt they would be getting this exciteed if they didn't have the water situation worked out by now.
LRC Price at posting:
$1.38 Sentiment: LT Buy Disclosure: Held
