RE: How come? Hey Materialsgirl...
First of all...."could" is a problem that the market wants to see change to "can" and "does"...they have missed their targets to-date...that will change.
Goldfields in my opinion, right now is a marginal property...gold prices would have to go much higher to bring it into play...I give it "zero" value at this point. I could go into a more detailed answer in regards to why but even management has put it on the "back burner". I will address it at a later date if "things" change.
As for Grey Fox, I see it's role as more of a replacement for the Black Fox Open Pit Operation...it is scheduled to end mining operations in 2015 which would leave the only feed being the Black Fox Underground Operation. We must keep in mind that the Black Fox Open Pit is currently providing about 1,500 tonnes per day....the Mill capacity stands at 2,000 tonnes per day.
The plan is for the Black Fox Underground to get to 1,000 tonnes per day which means that the Open Pit will provide the remaining 1,000 tonnes per day to get to 2,000.
However, any deposit is finite and the Open Pit operations will come to an end, presently as I mentioned....some time in 2015.
Conclusion: The Grey Fox Mine will replace production...not increase production.
Having said that, we must await for the Preliminary Economic Assessment which is scheduled to be released in November, 2012 regarding the Grey Fox Complex to get an idea of what kind of operation we are looking at and the "feed" that it will provide on a daily basis...in otherwords, available tonnes per day.
It is very difficult to come up with an estimated figure at this time due to the fact that we are looking at a possible Open Pit Operation or an Underground Operation or a combination of both...the Open Pit will provide more tonnage but at a lower grade...on the otherhand...an Underground Operation will provide less tonnage but at a higher grade.
The market as myself will await confirmation before we factor in value...any potential buyer will do the same.
Regards,
Digger144
P.S. We will get there...they are blazing a trail to that most wonderful Stope in the West End of the Black Fox Underground...but...remember, the market wants confirmation that the Stope lives up to the grade (6.0 g/t) and the feed (500 t.p.d)....could....can...does.