The announcement by Doray that Westgold has pulled out of the...

The announcement by Doray that Westgold has pulled out of the deal to purchase the Andy Well plant may help Ora Gold in the long run.

The existing plant is geared to treat high grade ore and as such would need to be modified to treat lower grade, by this I understand some extra cynide tanks and other modifications.

Ora have announced a program of mining some of their near surface gold deposits, with a view of toll mining with I assume Westgolds plant at nearby Meekathara. Previously with the the deal to buy Andy Well Wesgold would have closed the gap on any chance for Ora to deal with anyone else. Now it opens the options for either Ora to buy the plant, this being highly unlikely owing to their current cash position, or for another group or individual to perhaps have a talk to Crabb about a merger or takeover, grabbing the Andy Well plant at the same time.

With the SP so low it is not Such a bad idea.