Stefan,I had a look at a Capalpa PDF about their Edna May and...

Stefan,

I had a look at a Capalpa PDF about their Edna May and smaller Cracow projects, Opex from a year ago was A$769/oz! As you know both Edna and BGL are low grade, bulk tonnage, low strip ratio type of deposits with the entire required infrastructure close by.

Your reply mentioned start up delays, lower production, labour costs, energy prices etc. These are all quite possible issues but they are not going to push up Opex of $800/oz for Edna to $1200/oz for BGL. Even the initial studies which will err on the higher side only suggested $968/oz. And expectations from BoD are that this can be ‘significantly’ reduced

Also Colin Stewart report mentions: ‘Bullabulling is a superior asset due to much softer ore (leading to lower opex through lower grinding requirements).

Jeff Malaihollo, Managing Director of GGG Resources said “The metallurgical results are highly
encouraging and confirm that the Bullabulling Gold project has excellent recoveries at head grades of less than 1.0g/t Au. The Bullabulling mineralisation is not hard or abrasive in the context of the Eastern Goldfields which should have a positive impact on operating costs.


And as I’ve already said, which you didn’t comment on, there are some preliminary higher grade targets at Gib that they are now targeting, as well as at depth. These will bring Opex down (if) once confirmed. Not to mention the very simple solution of raising the cut off grade they use.

Lets be frank, if Edna can produce for $800/oz, BGL isn’t going to be far off given their softer rock and I’ll stick by my comment that $1200/oz ($400 more for every oz!) was a ridiculous suggestion. Perhaps we'll agree to disagree.

Temu