Will Anglo Gold Sign a J.V., page-4

G'Day BNW-Yes whats interesting about CRH potentially relaxing the Gold Royalty payment ( conditionally 5 Mil & likley to be in the form of a CR R.I.)  is the 1.2% gold smelter royalty as 
imo a second stage production hub is going to be the probable outcome at Sertao given the resource thats their to kick off production ( 50 ,000 OZ ) shallow & accessible there has been enough exploration drilling to justify an intense RC & D.D program at Sertao  this is where Anglo will kick in & from what it looks like from evaluation of known data eventual mine access could well be post processing the accessible open cut gold that the troy pits contain - be from the base of the try pit -an underground operation targeting the continuation of High Grade mineralisation that runs West North West from the pit floor .
Guess thats why an CIL Lic was applied for as it would be crucial & Anglo would wish to confirm a CIL Lic is a certainty even though itseems a given as TRY had a CIL back end in their on site processing facility at Sertao & recovery was in the high 90'S -97-98% gold recovery if i recall correctly, this information for Anglo & OGX is crucial because you already know what processing plant configuration works with this particular mineralisation  .
And back to CRH's gold royalty -food for thought.
If They CRH where interested as they have security over all brazilian assets why would they relax terms -its a vote of confidence from them as to what the future potentially holds as clearly they CRH are not after the key's.
So a 1.2 % Gold Royalty mmm 
Lets just say Cascavel hits 100 Oz PER week in the near term -just for calc's on a 1.2 % Gold Royalty  -thats good for Cascavel as it begins its journey though only 5,200 OZ per P/A  at 1.2 % is the equivalent of 62.4 OZ for CRH -P/A in exchange for relaxing the equivalent of 1,000 OZ per quarter -so 9 months = 3,000 OZ vs 62.4 OZ royalty payment -Nadda from me on that senario
Though it implies something else is up & thats a bigger picture factor .
Should a second production hub eventuate at Sertao then we will understand why the 1.2% Gold Royalty  was accepted by CRH  .
Just considerations -lots playing out as we speak.
imo-glah
salt