RE: RE: RE: Gold swap I am sure that if there is a way to extend the mine life at Stawell, CRK will look to do it. But it is going to depend on the economics. And that is what the Mine Planning currently underway is all about.
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If one looks at the May 2012 Reserve/Resource statements on the website one can see Stawell apparently has ~206K ounces of gold on the books at a surface deposit known as Magdala. 2.15 gpt grade. Who knows what the permitting or development cost would be to go after this gold? It could give nearly 3 years of extra life to Stawell, but with 1/3rd lower grade, are the costs paid and free cash generated?
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3Q MD&A has there terse statements about Stawell.
Stawell Gold Mine
Exploration was focused on regional tenements, with soil sampling in the region generating drill targets at the Wal Wal area. Soil sampling has progressed onto the Wildwood Orientation survey which is currently half way through the program.
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Following the decision to ramp down underground mining activities in 2013, the Company is reviewing the potential for developing known deposit extensions on the existing mining lease. A decision to carry out additional work at Stawell is expected in the fourth quarter of 2012.
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The December 2012 presentation suggests some possibility of treating stockpiles. Reserve statements doesn't show any stock piles and grade is unknown. Also Present suggests some additional drilling might be able to add mineable ounces on known deposit. Perhaps that is the surface ore? Shoot maybe on a retreat basis, CRK could mine the crown pillar? But hey, that's a high risk proposition. Maybe there are some remnants and scraps that could be captured, but probably not enough to offset additional costs?
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So we will have to wait and see. If they do shut down Stawell for good perhaps they can mobe the mill equipment up north for another mill on one of their properties? I'd hate to be trucking ore around if Brent hits 150!
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But don't necessarily fret th eclosureof Stawell. This has been teh plan all along. The key is getting NWT production ramped up to come on line as Stawell fades to black. Now we have at least 12 months time to transition. So any extension of Stawell helps the overall time line.