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THANKS UFX , I was pleased to see in the presentation that it...

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mal230355

1,204 Posts.

105

13/08/18

20:59

Post #: 34910181
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Originally posted by UFX ↑

Ok Mal, about Maxwells Reef. I've just read comments that others who I assume probably attended the same field day we did. I agree with all their comments. For me it was an eye opener to see the reef and the antiquated scraper IMO was not exactly what I anticipated.

Just some background info on the reef, it was a new find by MCO and the drill results were relatively consistent and of high grade so the announcements of the drilling and the proposed development and mining of it was received very well by the holders at the time. MCO at the time was cashed up with much already spent on upgrading infrastructure and with grand plans to open the whole goldfield eventually with the new mill as the processing hub.

Everything it seemed was going well for MCO until they started developing rises and drives to reach Maxwells Reef. While doing some of this work, the miners found, something interesting which wasn't anticipated, perhaps Stones Reef, and decided to waste time developing it in the wrong direction to Maxwells. It was a ball up and perhaps 2 weeks was lost in just getting the bearings right and focussing on the main game again . There was some disappointing market updates during that time. When they finally had the drive which Aurifice referred to they had a field day for investors.

IMO the reef had a huge alteration halo around it. None was oxidized like some higher up reefs so the diorite around the reef over 1 metre away was glistening with arsenopyrites and other sulphides. The reef was from perhaps 600mm to 200mm thick from memory along the drive and a good reference point along it was a drill hole which was leaking water which the head Geo Greg Kernow mentioned to me was one of the better drill intercepts. The low dip, possible grade and tonnages were discussed. I actually saw a smidge of visible gold on the face After that on the surface looking at the stock piles the sorting of waste and quartz reef was discussed using a grizzley aand perhaps some jackhammers.

I have a feeling that they put all the mined ore and waste through the mill without bothering selecting the gold bearing quartz reef. The results from this trial mining of Maxwells seemed to take forever and once it was announced it was inconclusive, perhaps a little like some of the results AUL are putting up recently. Anyway it was obvious at that stage that the much anticipated and discussed grade factoring was BS . Had MCO poured big gold bars they would have announced that and more. This really was the beginning of the end of MCO. Too much was promised at an agm I attended afterwards. That disappointment was enough for me to sell out.

As for AUL's interest with Maxwells reef, IMO I'd be a little worried as a holder if they committed heavily with the Maxwell reef track record. If I was a holder now I'd be going back to the MCO announcements of the drill results of the Maxwell drilling campaign and compare AULs. Remember also that 45 degree drill into true thickness of a 500mm is 707mm. The angle of the drills into the proposed Maxwells reef look 45 or more. Also the developement costs are high in the morning star. From memory MCO transfered all the rail from level 9 to the higher level where donaldsons reef was. You are all going to need good luck with this one IMO.

Mal, your answer regarding Hunts will have to wait for another day. I've run out of time. My opinion about it will be a little more positive compared to Maxwells.

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THANKS UFX , I was pleased to see in the presentation that it appears El Dorado is in Aul hands. When MCO were operating the EL was in the hands of their drilling contractor from memory. I think they jv'd with him but no exploration was done.
From that book I have been referring to( why the hell did I give it to NG?) El Dorado was named because when initially found they just basically walked around and picked up chunks of gold. Initial recoveries when mined were 15 oz/t (yes ounces not grams!). I hope AUL dont have the same dilemma that MCO had of constantly changing focus as there are so many old mines on their ground worth a look at but I personally would have El Dorado close to the top.

AUL Price at posting: 0.6¢ Sentiment: None Disclosure: Held
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