Vertigo to make any mine profitable you need both grade and tonnes at that grade.
Traditionally a 2g/t for surface and 6g/t for underground Mines of average size aka 300,000t/yr.
And A1 might say that 4g/t is break even but at what annual tonnes and what cost per tonne and why have they been in such economic trouble and raising money etc. And you certainly will point to their Maldon ops but go ahead and then we will have that discussion too.
Don get me wrong here, I’m merely pointing out that the people posting apparent negativity here in some people’s eyes are actually discussing caution.
The mineralised areas in these dykes are all different. RoD is very different to MStar and more similar to A1 but then some areas in A1 are more similar to MStar. MStar is primarily low angle(less than 30degree from horizontal) so requires apparent dip finger raises with scraper assisted ore recovery to try to maximise recovery and minimise dilution.
RoD and A1 (depending on which area) can be ladder reefs that can be stoped overhand thereby be somewhat bulk but diluted. Each vein is different.
In the end it is only by presenting total tonnes mined x grade mined and at what total cost can we know what’s economic. All in sustaining cost AISC is what we need. No need for including capital cost because that’s already been spent and we got it for 10cents in the dollar by acquiring the mine from admin
AUL Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
