Exploration targets, page-7

Vein is approx 1m thick. But the grade and resource size are what matter. It's a small sample size so far, but extrapolating from the samples:
33 Barbara Lager samples @ 22g/t - estimated 38% of the total resource target
20 samples from Hangend Lager @ 14g/t - estimated 20% of the total resource target.
It appears that even the upper end of 15g/t might be a conservative figure.

At the middle of the target resource size - 2.5 Moz - this would be a very large resource.

A comparable example I could find was the Riefontein mine in South Africa - see the relevant section from the scoping study below done earlier this year: It looks like a similar mine with 4 levels and a gold vein deposit (as opposed to 5 levels in Schellgaden - I believe Scellgaden starts in the side of a hill).

The important figures from Reifontein:
- 9.51g/t - Schellgaden hopefully will be significantly higher than this as per above.
- low AISC of $578 / oz (Note this is including RSA's gold royalty which I believe is 5% - Austria has no mining royalties). At 10-15g/t, we can expect a very low AISC at schellgaden
- 448 koz contained gold - Hopefully Schellgaden will be over 4-5 times this with between 2 and 3 Moz a seemingly achievable figure

Reifontein has an NPV of A $150m. With 5x the resource at a higher margin in what appears to be a good juristiction - The Schellgaden target is a very good one. A market cap of $40m could be a drop in the ocean, because the HGM team seem to be relatively conservative, and if the target turns out to be on the money, we are looking at least a 10 bagger on this project alone.
That's ignoring HGM's additional high grade Copper and Cobalt prospects. The market is not picking up on this IMO. It's early days, but I've been excited enough by this target to load up today.