RE:nr
We are now entering the "make or break" phase for AGG's development of Kobada. If this testing proves up what they stated in the July 2011 PEA re: amenability to gravity separation, then at the very least AGG is going to be closely watched by the late stage cashed up developers and producers active in WA even though the general market is paying no attention.
Very interesting comment that was slipped in the PR about a 1500 ton per day gravity plant. This is the 1st time this has been mentioned publicly to the best of my recollection. Assuming an average grade of 0.87 gm/t that should translate into production of approx 15,000 oz per year, possibly more if the grades are understated as Pierre Lalonde has stated. That would translate into gross revenues of approx. $20MM per year based on $1300 oz gold. Peanuts to be sure but an important step forward and they'll leap frog AKG, VTR, ORE, PMI et al into production and have cash to keep the doors open and start developing this in earnest.
Hey T2 isn't this what you were calling for???
Anyone care to speculate how much a 1500 ton/day gravity plant would cost????? That will be the crux of the matter. If we can sell off the remaining Ghana properties that will raise some dough but not enough I would guess. Maybe if they can sell the properties it will give them enough equity to debt finance the balance??? Maybe we'll get a bump in the SP that will allow them to raise a little more cash in the market under less onerous terms then this recent offering disaster?? That might be too much to ask for in this market though. They will have to be creative.
Time will tell but all is not dead in AGG land......except for the SP!
GLTA