RE: welsh gold12 Sep 2020 22:41
VF
I’ve been wondering too about the potential profit margins. Clogau gold at the moment only contains a tiny amount of welsh gold as we haven’t been able to get any more, so the remainder is used sparingly...there’s definitely a huge market for it. I’d factor welsh gold as being at a 20% premium too, as mentioned, if production were to restart. The question would be though, what is the POG likely to be in the next few years? Our friends at Citibank are thinking $5000. What do you think? My understanding of the reasons for the mine closing in the 1990’s is a bit sketchy, but centres around it being unsafe (Now rectified, I believe), commercially unviable, along with environmental problems, such as runoff into the river. POG was only $400 maximum in the 90’s too, which I imagine didn’t help in commercial viability.
Where did you get the commercial extraction costs from please VF? As I’m trying to figure out how much it would cost to build the small processing plant they mention in the webinar. The processing seems simple enough, but it’s still not going to come for free. As we don’t have a telfer plant up the road, unfortunately, lol and Cornwall is miles away. Makes sense that they are using modern geochemical and geophysical analysis to pinpoint the gold, instead of blindly chasing the veins, which should save on costs there. As I can see where the statement came from that it’s like trying to find a needle in a haystack, due to the nature of the nugget formation of the gold. You could get absolutely nothing, or hit jackpot in the right place. So using modern techniques could possibly make all the difference here?
Planning is also a major concern. As already mentioned, there have already been Some steps put into place, regarding mine safety and would need to sort out the leaching into the river too.
Can anyone comment please and Correct/criticise?
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