Why NST might want AXMNST CAN HAVE THE LOT FOR FREE (instead of...

Why NST might want AXM

NST CAN HAVE THE LOT FOR FREE (instead of paying tax next year)

For $30m it gets a $300+m tax loss for starters (worth around $100 cash over 3yrs)

BIOX plant similar to what it will require for its new tenements (refractory ore) thrown in, which produced 50+koz last year and not currently run economically at less than half speed, starved of ore to keep it running continuously and economically, but has produced over 100koz in the past, with a dual ore circuit in place for any further non-refractory finds on its AXM tenements

THE ORE IS SITTING THERE WAITING TO BE MINED FOR THE PLANT

AXM does not have the resources, in mining talent, in plant and cash to do any better with its existing mine. These skills and needs are clearly resident within NST.

What it does have is a BIOX plant that is licensed and part of a BIOX culture. It has a workforce that has run the plant, although there is some disputing how well.

The purchase would de-risk proposed plant developments on NST existing tenements for refractory ore and at the same time provide up to 100koz extra production in the VERY NEAR TERM, rather than a few years away, when a new plant is co missioned thus accelerating NST’s growth path.

The downside – Maybe BIG Bill can’t make it work at Wiluna either.

Then again, BILL can just use the tax loss and forget the refractory ore, if it’s too much hassle to process on his own tenements and save the cost of an expensive plant to find out the hard way.

Gents NST has not long ago, obtained a number of tenements .The predominant resource is refractory ore although some transitional ore is present. NST is going to have to look at either a BIOX or BIAX bacteria based plant to treat it at around 100koz / year production.

NST’s current experience is with a conventional CIL plant and has NO BIOX/BIAX EXPERIENCE

Bill might have to get moving if he wants a look in, others are sniffing and it may be

TOO LATE ALREADY

http://au.news.yahoo.com/thewest/business/a/-/wa/12934384/ex-gutnick-lieutenant-has-plans-for-apex/

DYOR+DYODD Just a thought of an active mind