James, Just catching up on my Northern Miners this weekend and I came across a PR from St Andrew Goldfields (SAS-T). After all their PR, they added that,
"St. Andrew generates revenue (excluding interest and other income) from custom milling ore at its Stock property. A 3-year contract, initiated last year, with Exall (EXL-T) and Glimmer Resources (GME-V) allows St Andrew to treat ore mined from the Glimmer mine. Situated near Matheson, the mine is owned 65.5% by Exall and 34.5% by Glimmer Resources."
The preceding stuff would be common knowledge; but even though the expansion of mill capacity was discussed before, it was the first time I saw it put into perspective for us:
"The Stock mill has the capacity to treat 1,000 tonnes per day but soon will be expanded to 1,200 tonnes. The added capacity is expected to reduce unit milling costs by 10%". Hopefully this means that some (if not all) of this 10% will accrue to the Glimmer JV. So this is "exciting" stuff, especially where the name of the game is to reduce operating costs while waiting for the POG to get up to over $US300 on a sustained basis. These savings could be put to good use while waiting to construct their own mill. (e.g. reduce requirements for borrowing etc). Plus the two years left on the 3-year contract gives them ample opportunity to plan and construct a mill designed to process the latest reserve assessment (do I hear 20 years at 100,000 per year James?).
As we wait for EXL and Glimmer to respond to the recent positive market forces. Barrick, Placer, Kinross, Battle Mountain, El Dorado, etc are producing handsome returns for shareholders; but EXL/GME shareholders are paying for the apparent lack of progress in bring this litigation to an amicable resolution. All shareholders are paying dearly for this delay; so come on Steve and Richard bring this impasse to a conclusion or else the POG will be back in the tank and the shareholders would have missed yet another rally. Comments?
Cheers Winzer |
