wilgar/ crushing plant, page-27

I think everyone's jumping the gun a little about the imminent startup of a processing plant for the mineralization at Wilgar.

There hasn't been all that much information released on drilling results from the Wilgar campaign. However, from the few drill hole data that have been released, it is instructive to re-calculate the results in terms of $$$s rather than just the element/metals.

It is clear that the mineralization is complex (Au, Ag, Te, U & Mo; {even Se (I think) & rhenium in the early days}. As well as being complex compositionally, it seems to be very inhomogeneous & variable in grade for each element. Thus the $$$ return is dependent on the varying % of the different elements at different parts of the drill core and in different parts of the zone of mineralization.

We shouldn't think that reducing all the grade figures to "Au equiv" will be the end of the story. The "Au equiv" concept, I believe, is just a presentational convenience. The present data would indicate that to make it viable, all the money-elements will need to be recovered. (And this might also apply to the U - a problem of a different nature.)

So we have a variable and complex zone of mineralization whose viability could well depend on recovery of all the elements mentioned. To me, this says that the metallurgy could well 'make-or-break' Wilgar. At least we can guess that the Wilgar processing plant will be complex and undoubtedly more than a "crushing circuit and a Wilfley table".

A processing plant will surely have to contain crusher, grinder(s), a flotation circuit for the Mo (& the rhenium if this is in the molybdenite, as seems likely), cyanidation tanks for the Au, stripping tanks, sulphuric acid tanks for leaching the U (followed by solvent extraction, precipitation, filtering to yellowcake, calcining to U3O8).

And the Te? It's high $$$s in some cores so presumably worth recovering. Not sure whether Te has ever been recovered as a product in any mining venture in Australia. Don't know what processing circuit will be needed. Whatever happens, I can see that this mineralization will need a lot of metallurgical work before a comprehensive plant can be designed and the deposit assessed for viability.

So my view is:-

don't worry about the refurbishment of the secondhand plant for a while yet

don't expect production from Wilga for some time

look for more drill results from Wilgar to extend the mineralization zone

expect a comprehensive metallurgical program to work on the processing issues

might lead up to an assessment of viability.

There is another problem, alluded to above. The uranium.

There will, of course, need to be a political resolution of the uranium mining position in Queensland. I don't even know whether the present Govt position (presumably inherited from previous governments) is a written stance or not. And if so, what the wording is. Does it ban the production and sale of uranium product (as, for instance, yellowcake) or does it ban uranium mining?

If the ban is U mining, does it specify what uranium mining is? Is it ore containing uranium to a certain specified grade? Is it ore containing certain discreet uranium minerals (e.g. uraninite). Would the ban be applicable if the ore is mined for other products (e.g. Au, Mo)? Would there be any residue disposal problems if the ore was 'mined' to produce Au & Mo leaving the U in tails?

The presence of U could well turn out to be a nuisance rather than a $$$ advantage. Because there hasn't been any U mining in Q since Mary Kathleen just down the road (1975?), it's highly likely the Q gov are not presently set up to assess & monitor radiological issues outside of the medical arena.

Monitoring & assessment of radiological aspects of U mining will be a big step for the Q gov since it involves a harsh uncontrolled environment, mine blasts, dust, large scale processing, fugitive losses of radionuclides, transport of the product, disposal of a radioactive material (tails, mine residue) in a relatively uncontrolled environment.

Both workers and members of the public will need to be target groups for radiological assessment & monitoring. Even worse, federal gov agencies would also need to be involved (to get an export licence). A long & slow business to set up the administrative, permitting and monitoring regime. Don't hold your breathe!

One cricial question at this time will be whether Wilgar will be subject to radiological restrictions if the Qld ban on U mining remains and CDU wants to mine the Wilgar mineralization without producing a yellowcake product.

Whichever way it goes, the development of Wilgar will be a fascinating study.

Cheers, Gung.