low cost gold and silver play about to run, page-11

One of the better gold/silver plays on the asx, not much press or interest on HC but should change with production next year. Somewhat similar production profile to TRY's casposo project.

Key points/comments:

219M shares
A$10M cash
Production first qtr next year
Production rate ~45koz Au and 500koz Ag
Expected cash costs less than US$250/oz AuEq.
Resources ~230koz Au @ 8.5 g/t, so ~5 years production but only drilled to 150m
Both MML and KRM share common directors.
Blue sky is depth potential to expand resource and production to >100koz AuEq.pa.
Recent sampling and stockpiled ore points to possibility of underestimation of grades from drilling, if confirmed could see further increases in production.
High grade low cash cost gold silver producers are limited on the asx, would look at any pullback as a buying op before production or drilling results beyond 150m.

Update from qtr report;

Way Linggo
Underground mine development and plant construction activities progressed.

Diamond drilling exploration programme underway with 3 rigs on site.

Underground development face channel sampling results along trend of the North Vein ore bodies include:

112 metres grading 20.4 g Au/t and 305 g Ag/t
90 metres grading 33.5 g Au/t and 414 g Ag/t
43.8 m grading 27.5 g Au/t and 393 g Ag/t
6,482 tonnes of ore grading 20.6 g Au/t and 274 g Ag/t already stockpiled on the surface.


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