There still is a chance for OC to be a multi-million oz deposit and that is at depth. For the time being it seems they will have something like 0.5m ounces in 4 open pits and a starter pit for trial mining. The starter pit is important if the SPP falls short and development is slow, it looks they can bridge a gap of 3-6 months of no ore from Smarts/Hicks in 2020 if the need arises. Given the variability of grades I think there really is a very high chance at least one of the four pits will be economic in a worst case scenario. That means we can pretty much take the enabler function of OC for the Smarts underground and Goldstar + Gem Creek exploration for granted. That may be the mort important function of OC in the long-term. And OC itself, looks like a 0.5m ounces deposit at very healthy margins. While still a lot of work is to do this latest update gives a pretty clear picture of the nature of the deposit.
TRY Price at posting:
9.9¢ Sentiment: Buy Disclosure: Held
