Ann: Strong Drilling Results Highlight Growth Potential, page-10

The Chinese have recently done a deal to sell Coolgardie to Intermin. The question is will they eventually quit Laverton or try and restart mining. You can read about the troubles FML have had here.

Chinese looking down the barrel of $140m loss — is this the worst deal in Australian gold mining history?

https://www.abc.net.au/news/2019-02...loss-from-australian-gold-investment/10808558

Focus have the 1.45Mt/annum Barnicoat mill at Laverton which was refurbished in 2008 but it has been on care and maintenance since FML shut down their mining operations in 2013. FML have spent most of their exploration dollars on Karridale on the east side of the Laverton belt since reverting to being an explorer but recently other prosepcts such as Beasely Creek have started to show promise.

Also not long ago FML renegotiated the old WMC royalty agreement over the shutdown Lancefield mine with South32. Lancefield was the most prolific mine in the district in the 1990s grading at 6g/t. The old WMC royalty had paralyised progress/exploration on the project because it had become too onerous as it was payable on an ore tonnage basis which increased with the spot gold price, which at the time of striking the royalty agreement was referenced to a base spot price of A$525/oz. After freeing up the asset again with a renegotiated less onerous royalty (last year in July) FML collected all the historic data on Lancefield and based on just just two of their own RCDD holes and 108 historic holes they produced a inferred mineral resource estimate of 3.9 Mt grading 6.3g/t gold for 793,000 contained ounces.

There is definitely a lot of potential in FML's Laverton landholdings which are also very extensive.
I wonder if the Chinese are planning a completely exit their Australian assets or not. If so these FML assets could come into the mix for DCN at some stage.

According to the above article, in 2012, BOD valued FML's Laverton's assets at $34 million.Esh