HEG has been available at 16c for the past week and yesterday got down as far as 13c. Excellent buying on the dips particularly but even at 16c, HEG is a bargain. The company has all of the Hill End goldfield in NSW and is just moving in to production. Price is currently held down by fluctuating POG and uncertainty over the possible need for more funding although the co has money in the bank. Operations are profitable as they are but will be even more so as production doubles over coming months.
From my point of view as a geologist, HEG is a no brainer. Hill End has the distinction of hosting the largest and richest gold ore ever extracted, the Holtermann specimen. Right now they are mining the same vein of ore at a deeper level. Diluted grade has been up to 3oz/t and is currently averaging 1oz/t. Costs are around $300 to $350/oz.
