I would not be surprised if this deposit gets turned into an underground project from the start. This idea you can mine narrow vein very high grade with surface drill and blast is flawed. It is possible but its also unlikely you will get the shotfirers with the skill level not to dilute the ore with waste. The shotfiring pool of talent is very thin. Most good guys work in Civil Construction which pays nearly double that of gold mining. The next pay step down is iron ore mines but most good guys don't last there long as the big companies are drill and blast retarded. Its unlikely the contractor who wins the tender on the lowest price will provide quality Drill and Blast or be able to afford a decent blast crew or systems.
Im happy with the miss on the exploration side, this is a spec exploration stock, they drilled on a hunch which didn't turn out, this happens and is expected, at least the cash was spent on having a go, not bled away to directors and consultants accounts.
In hindsight this money spent would have covered setting up a underground portal and some decline if these guys knew how not to over complicate things.
Not over complicating things means designing an exploration decline in house that can be used later on for production. Getting one of the big underground contractors to send 3 to 4 all round underground miners to site and starting an adit from the current open pit. Pay them per meter of drive completed then start the exploration form underground where its most likely to be successful. MYG have easily paid out enough money in consultant fees to have this done already. How much more will they spend until they stop farting around and get to the real show?
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MYG Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
