Here is what Menzies Gold was thinking in 2002, with AUD POG...

Here is what Menzies  Gold was thinking in 2002, with AUD POG around $600.   They never did get that stage 2, feasibility study done, although they did do some drilling and metallurgical work and define an Inferred/Indicated 69k oz resource @11g/t and show recoveries of over 95% on two composite samples.

Shortly after the deposit was spun out into United Gold (renamed Royal Resources).  

MENZIES GOLD LIMITED 2002-05-29 ASX-SIGNAL-G


As part of a planned strategy of discovery and acquisition of
high-grade gold resources, Menzies is pleased to announce the signing
of a Heads of Agreement with Thundelarra Exploration Ltd on the
Rothsay Gold Project in the Murchison Province, Western Australia,
Under the terms of the agreement, Menzies may earn an interest of up
to 65% in the Rothsay project by taking the project to final
feasibility within twelve months and commencement of production
within eighteen months.

In the initial stage of the earning period (Stage One) Menzies and
Thundelarra, will jointly fund exploration and metallurgical studies.
Stage One will be completed within four months. Thereafter Menzies
will sole fund feasibility work (within twelve months) and proceed to
a decision to mine.

During Stage One, Menzies and Thundelarra will undertake diamond
drilling beneath the old Rothsay workings to obtain representative
metallurgical samples as well as infill drilling in areas where
additional geological information is required. Stage Two will see the
completion of the feasibility study, which will combine the 100%
Menzies' owned Deflector deposit (King Solomon Mines Operation) which
has an underground resource of 308,137t of 5.9 g/t Au and 2.7% Cu
(58,456 oz Au and 8,319 t Cu). The Rothsay and Deflector deposits
compliment each other with similar milling requirements and copper
credits.

The Rothsay project covers 1091ha and is held under two granted
mining leases numbered 59/39 and 59/40 in the Yalgoo Mineral Field.
Rothsay is situated 300 km north of Perth and approximately 95 kms
south of the Menzies' 100% owned King Solomon Mines Operation
(Murchison Gold Project). Previous operators had identified a
resource of 470,000 tonnes of 9.97 g/t gold in 1988, and commenced
mining. A total of 36,000 ounces was produced before the weakened
gold price forced the mine closure in 1991. At the time of closure,
remaining resources were 240,000 tonnes at 6.8 g/t gold (52,470
ounces). Recalculation of the resource by Thundelarra, based on
additional drill information, resulted in an inferred and indicated
resource of 69,000 tonnes @ 11.0g/t Au.

The Rothsay mine workings are developed on a major shear zone, with
consistent quartz veining extending for over 600 metres in the
immediate vicinity of the mine. Drilling by Thundelarra in 2001 has
extended the gold bearing portion of the vein some 475 metres south
of the existing workings, with drill intersections of 5 metres @ 9.2
g/t Au and 0.63m @ 20.38 g/t Au between 86m and 165m depth.

There is considerable exploration upside at Rothsay, with a number of
lode systems untested. As well, the immediate extensions of the main
Rothsay lode have not been adequately tested, both along strike and
down dip. The mine has excellent potential to be developed as a high-
grade operation, utilising selective mining practices. Drilling at
Rothsay is planned to commence in mid-June.

P Ingram
MANAGING DIRECTOR