Well, while we await further news, I think it's worth pondering the 2-phase nature of the Gravelotte Emeralds trial mining and processing program.
Phase 1 comprises testing of historical waste dumps to determine grade and recovery characteristics, while Phase 2 will mine and process 8,000 tonnes of fresh hard rock sourced from the Cobra and Discovery pits.
Total combined recovery from the 10,000 tonne trial is expected to be +250,000 carats.
It's one of the mouthwatering aspects of Gravelotte in my view that even before MGU need embark on hard rock mining in earnest (and note, the Cobra pits were developed on a hill and only mined to approximately 10 metres below plain level; the Discovery pit at its deepest point to only around 25 metres below plain level), there are multiple ore dumps already on site. which can readily and cheaply generate cash-flow and help grow the operation organically.
From Monday's Announcement:
Included within the Mining Lease are an estimated 850,000 tonnes of coarse tailings and untreated ore, contained within multiple dumps (“Dumps”).
The Dumps are mostly from the historic mining and processing of the Cobra and Discovery pits.
Mine records show that, in the period from 1977 to 1982, an estimated 50,000 tonnes from the Dumps were processed for a recovered grade of 2.7g/t of emerald (13.5 carats/tonne).
Doing the arithmetic on 850,000 tonnes at 13.5 carats/tonne, and assuming only a very conservative US$1.00 profit per carat (anecdotally, I'm told we could in fact expect multiples of that), I think you'd agree, comes to a very handy sum.
Progressively applying those proceeds to cranking up or supplementing hard rock mining, and you begin to see the possibilities here - particularly when you consider that the historical records indicate the average recovered grade from hard rock mining at Gravelotte was around 6.2 g/t (31 carats/tonne)!
