Mine finds 59000 ounces

Stru said:

That is some rich ground, yikes!

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grubstake said:

Stru said:

That is some rich ground, yikes!

Click to expand...

Actually, it isn't - the linked article is just hyping a press release and was paid for by Great Southern (note how the article says "SPONSORED" alongside Matt Birney's name at the top).

This post's title "Mine finds 59000 ounces" is incorrect, as there is NO actual mine as yet (and may never be), those ounces are just the claimed results from an exploration drilling program on which almost $900,000 has been spent ("delineated at a tiny cost of less than $15 per contained ounce"). 1.1 million tonnes grading 1.7 grams per tonne is a medium-sized but low grade orebody and the "inferred mineral resource estimate" means the 59,000 ounces is only a guesstimate, which may or may not prove to be real.

The mention of the possibility of toll treating the ore, implies that the discovery may be too small to support the construction of an onsite processing plant, so if a mine was to be developed, Great Southern would need to truck the ore to somebody else's processing plant and pay them to extract the gold. Those haulage and treatment costs would eat into the profitability of the mine.

The mentions of other large, established mines in the region are what is termed 'nearology' - naive investors may think the claimed discovery could be another elephant, when it might easily turn out to be a pup. A lot of expensive drilling, assaying, sampling and testwork lies ahead and company shareholders may need to open their wallets to pay for this further work, before a more accurate assessment of the discovery is eventually known.

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