@Krum was there an option to open cut at Wallaby?

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03boz

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07/07/18

20:16

Post #: 34207356
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Originally posted by Krum ↑

Hi Chayanne

I think most of the potential production zones for AUL are a 50/50 bet between economic and uneconomic.

In my experience with these types of underground gold mines one needs between 6 and 10 grams per tonne head grade (the grade reaching the surface and fed to the process plant). That range is dependant on haulage distance (from face out along level and up shaft).

The 50/50 thing is because you can kill the economics by drilling too much so historical experience in each mine defines the optimal drill spacing. That’s where the average multiplier of drill grade to production grade comes in. More dense drilling might provide more accurate drill grade but not when the zones are extremely nuggets.

Traditionally these mines drill into known structure, drill about 30 holes, and if a few hit high grade then go mine the entire zone and then compare the average grades.

2 miners will develop and extract a working place and you might have 2 working places per zone. In 0.5m thick quartz they can produce 7000tonnes per year per 2 man team so you can do calcs.

To improve the 50/50 odds I like to see 3-6 different zones being mined. Say 2 in Morningstar, 2 in RoD and 1 in Wallaby.

Also I would like to see some discussions with A1 around toll treating their ore - seems obvious.

Finally we could easily do desktop study of regional prospectivity of the massive exploration areas.

Finally I want to see desktop study of the MStar deeps potential and method and costs to access.

All of these could at relative low cost be desktop studied and a grand plan announced.

If that were announced I would then want to see a capex and funding plan presented. I would offer a Rights/Sophisticated Placement plan offered to current AUL shareholders plus the old MCO holders of record.

A once off $4mill raise offered at 10% PREMIUM to 6mth VWAP would actually succeed I reckon.

I would buy into that.

Krum

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@Krum was there an option to open cut at Wallaby?

AUL Price at posting: 0.5¢ Sentiment: Buy Disclosure: Held
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@Krum was there an option to open cut at Wallaby?

Top Stories

Auric sniffs gold up to 12.1g/t through drilling at Spargoville prospects

Cyclone signs MOU with Vale for development of Iron Bear play

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

Tyranna wraps up lithium drilling in Angola; says looking for other projects with different metals

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Recce scores $6.75M R&D rebate

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play