this is $130-230m of gold already mined and available for treatment
surely the capex requirement can't be that onerous ?
3) Recovery of Gold from Mill Scats
In June 2012, the Company completed a drilling program and economic study on the potential recovery of gold from a large stock pile of between 12 and 15 million tonnes of ball mill scats from the historical operations. The study considered a number of different process routes to recover between 100,000 and 175,000 ounces of gold through the retreatment of the highly mineralised material. The material was stockpiled at a time when gold prices averaged around US$300 per ounce, and the 2012 study was based on a gold price of US$780 per ounce. Despite more recent higher prices for gold, the Company believes the high capital required to develop the project outweighs the potential risk adjusted returns.
LRL Price at posting:
1.2¢ Sentiment: Hold Disclosure: Held
