Fair value market cap analysis?, page-88

There is undoubted potential at the Star at depth - around 25 level and down. The cost of getting there is significant given the two options - after dewatering workings below 9 level.
1. Recover the main shaft from 9 level (current water level) to 19 level, rehab the crosscut to the collar of the underlay shaft, recover the underlay shaft from 19 level to 25 level. Reinstall winder at 19 level. Install ground support, rail, compressed air, hv power, ventilation etc etc etc.
2. Establish decline access from 2 level to 25 level - circa 900metres vertical @ 1:5 gradient = 4,500 metres. If the decline (5x5) can be contained within the confines of the dyke it should require lesser ground support than out in the surrounding country rock (bolts, mesh, shotcrete) but I would envisage costs to be Around $4-5k per metre = circa $20m + services. A major issue with this option is the placement of 112,500 bcm of waste - probably swell to 170,000 cubic meters. Certainly no room on site - might be able to offload to Mansfield Shire for road base.
I’ve been out of the loop for too long so can’t offer an estimate of shaft refurb but I would think that it might be the better option given the spoil placement issues with a decline.
In terms of immediate prospects the RoD offers promise to provide a mining cash flow. I think MCO might have put a couple of holes into Wallaby but can’t recall the results so I wouldn’t give this any priority.
If they were to consider toll treating they would need to ensure that they would be paid for their efforts.