75% interest in White Dam, which includes a heap leach processing facility which possibly could be used at Turner River. The Turner River scoping study is due this quarter. The resource is high quality but small which leads me to believe heap leach is the way to go assuming metallurgical studies support it.
The Mt Boppy mine, requiring financing of around $25million at this point with a NPV of $25million. More importantly the mill is a strategic asset and its likely the minelife will be extend far beyong the current reserve assuming exploration success. They will defer this development until Marda is successfully commissioned.
Financing is really not a problem, the problem is how much upside is given away to get the money. The merged company is in now coming from a position of strength in negotiation with the stronger cash reserves and other assets . The White Dam project would have to rate as one of the most successful small scale heap leach projects in Australia.
Its a 1 +1 =3 merger in my view as a PLY holder
SXG Price at posting:
3.2¢ Sentiment: Buy Disclosure: Not Held
