CRE (ASX) why fml won&#039;t pay anymore for cre?

copy of my FML Post for your reference

Gents,

thought i'd go digging amongst old CRE reports before they and the CRE website ceased functioning.

It would appear that CRE's upgrade of their mill with a Malaysian sourced crushing circuit for around $6m at the time,just couldn't handle the HIGHER WORK INDEX ORES,especially from sickle and had to be blended with ore from nearby leachpads to achieve reasonable throughput even with a second ball mill.

So now a couple of comments come in to sensible FOCUS.The comment that all the CRE mill needs is a NEW CRUSHING Circuit.
Do We Now KNOW WHY?

The other problem is the Barrack contract.I suspect not only does it specify minimum ore grade,maximum (arsenic,or copper,can't remember the comment ref ADMIRAL HILL ore now unacceptable,even if blended in),but i suspect also MAXIMUM WORK INDEX for the ore blend to be crushed.Given the low minimum ore grade,i suspect the work index is pretty low too.

As a lot of the surface ore in pits is higher work index than the ore below further down,now we have a POSSIBLE reason for mining,but not being able to mill all that 2.5g/ton surface ore,unless its blended to BRING ITS Overall WORK INDEX DOWN,with suitable site tailings.

Hence the hunt for lower work index ore,i.e. the soft chatterbox shear to blend in.How much site trash there is to blend in is worth a bit of research.Obviously NOT ENOUGH FOR THE LAST TWO QUARTERS TO MAXIMISE MILLED ORE.
Admiral Hill (now unacceptable)was CRE's baseload ore,just before the takeover as well.It's got rising copper content as well with depth,which complicates ore processing in the future.

Great to have ore,now i would guess there will be a PROBLEM unless sufficiently softer ore is attainable.

CRE back to tons of ore,but HOW TO MILL IT.NO MILL FOR IT.
Only Just more than an explorer with the ORE and an UNSUITABLE OLD MILL,in that it's got a milling contract for a few years FOR ACCEPTABLE ORE.

BUT IF YOU CAN'T SUPPLY ACCEPTABLE ORE?What have you really got.

Meanwhile stones caught in the crushing circuit and CRE's limping along,possibly stockpiling higher index ore no doubt waiting for cash for a crushing circuit that FML's got the money for but can't front with and won't until it has full control.

Someones cutting off their nose to spit their face as they say,while the price of golds high and somehow i don't think that's FML.

i note FML haven't been buying any of the CRE shares floating around lately,nor converted their loan into shares.
Maybe if CRE falls,then FML gets the lot anyway,with security over all its assets,with piles of ore ready for a revamped mill,with a siutable crushing circuit.

DYOR+DYODD My opinions and conclusions are just pure speculation.As are my potential scenarios/situations/conclusions here.DYOR+DYODD