An Easy Arbitrage Opportunity: The Next New Goldhttps://katusaresearch.com/an-easy-arbitrage-opportunity-the-next-new-gold/
Australia has a bit of a different style than we do when it comes to proving up ounces. Somewhat typical of the Aussie mentality, they use a “just in time method”, which means they do not move ounces from “measured and indicated” into the “proved and probable” category until they have to. Due to this, the 5-year plan that comes as part of the annual guidance always underestimates production in the later years.
The Cosmo Gold Mine is the main upcoming priority for Newmarket Gold. Commerical production was initiated in 2013 and has ramped up quickly. There are numerous additional targets that are available to pursue. The deposit is open along strike with high grades being intercepted on plunging shoots. The corridor containing the known deposits at Cosmo and Howley extends approximately five kilometers along strike. At Howley, drilling to date has only extended to approximately 100 metres depth, so there is significant potential at depth and along strike while remaining an open pit operation. From the discussions with Doug and Blayne, 240,000 ounces per year of production is by no means a stretch and looking at Q1 2015 numbers, likely a reality given they produced nearly 60,000 ounces in the first quarter.