plough,the reasons for NST's placement,i will not comment...

plough,

the reasons for NST's placement,i will not comment on,except that NST may be at the peak of its milled ore grades and start heading in the other direction,when it starts to add the lower grade ores surrounding it and in its mine,along with those costs.Bills opportunity for cash is i guess NOW,before the painted picture shows any per ounce cost flaws.High grading your ore thru your mill and coming back for lower grades later certainly makes lots of things really good upfront,cost and cash wise.A well managed company,with a head start to start with $17m? worth of new drive development done by its prior owner and allowed to start mining and stacking ore 2 months before it had to even start paying for the mine from memory.With most payment via tax deductable royalty time payment.Why i was a shareholder.That payment and tax deductability has NOW GONE,but normal access drive costs are there,or soon to arrive.Sorry for digressing.

Bills got expansion on his mind,it would be a pity for him to do a placement to buy an updated plant to deal with his refractory ore in 2-3yrs,when he can pick up an operating,although,probaly now very outdated one for nix and collect and keep $60m he would pay in tax over the following two years,while refing what he needs.

Having read old analysis of Wiluna mines ore,the phrase was used floating in and out of semi-refractory ore and there was analysis done that indicated,there could be reasonable recovery before the biox circuit,although Juk i believe has said this has never occurred.

Naturally technology has moved on considerably since then,hence Bills picking up of those stray refractory tenements.

The reality is more and more of the worlds gold is coming from so-called refractory/semi-refractory ore and more and more of that is being extracted prior to traditional forms of refractory treatment,including biox.With better ore concentration and inline pressure reactors,sometimes,very little is left with some so called refractory ores,if some marketing info is to be believed.

We certainly see things differently and i like to see mills fill and future rehab liabilties disappear,rather than a mill at half or less speed,to hoard cash and make per ounce costs look great.In the end if you want more ounces,you have to touch the lower grade ores and watch your cost figures take a hammering.Something NST has avoided.


DYOR+DYODD