RE:RE:Is You Is or Is You Ain’t My BabyOldie, thanks for providing such rich details.
Additional drilling by Monument confirmed that the historical resources were accurate.
So, we have 400,000 ounces at Burnakura, 153,000 ounces at Gabby and 81,000 ounces at Tuckie.
An important note to these estimates, is almost all of these are shallower than 100 m..ie open pit .
But, the big increases will come from underground development below these open pits....which have barely been drilled.
WGX is now producing 300,000 ounces per year from 7 underground mines adjacent to Monuments tenements.
They use the best in modern technology with AISC below $1000 US.
What is very interesting about Burnakura for example is the following production results from 3 underground mines 100 years ago...look at those grades!
" According to De LaHunty ( 1970 ) the major production came from Burnakura from 1896 to 1916 amounted to 42,545 tons containing 32,131 ounces at an average grade of 26 gms per ton from three underground workings at Federal City, Alliance and New Alliance "
In its recent press release, Monument stated that its future growth area will be Murchison.
Excepting Tuckie, Burnie and Gabbie have 550,000 ounces within the shallower open pits.
Which is a great start.
However, taking a lesson from WGX mines, the largest and richest gold resources lay beneath the shallow open pits at depths below 100 m or so, at Burnie and Gabbie.
WGX is still finding economic ore at the 800 m depth level.
So, here is how I see our future unfolding.
1....Sell Mengapher for cash
2....defer the BIOX plant at Selinsing, as new oxide discoveries at Peranghi and Mentique are sufficient to keep the oxide plant producing for a mine life much longer than previously estimated.
3..Use the cash from Mengapher to launch a major underground exploration and development program at Murchison that would add sufficient higher grade ounces to begin production at Burnakura at a level that would exceed 75,000 ounces per year.
4...Either, in the short term, toll mill produced ore through excess milling capacity that WGX has in the vicinity of Burnie OR acquire and refurbish one of the 1 million ton mills close to Burnie OR construct a new plant using Mengaper excess cash.
5..Dato will lead a renewed BOD..
Its all starting to make a lot of cents.
What was that WW2 song ?
Ah yes.
" I'm beginning to see the light "