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Tagged with: AGC

Jan 2004 - Agincourt Resources

Agincourt Resources Ltd (AGC) – A >100,000ozpa Australian Gold Stock

  • Agincourt has acquired the Wiluna gold mine which has been producing about 117,000ozpa at cash operating costs of up to A$420/oz since SQ02. However, it can be transformed under AGC within 2 years to produce >140,000ozpa at cash operating costs of possibly <A$350/oz, from a combination of reopening the East-West >6g/t U/G Lodes replacing low grade 1.2g/t stockpiles, and higher oxide or other non-refractory feed from a number of prospects.
  • Apart from the prospects under the salt lake south of the mine (such as Regent and Williamson), there are other regional oxide prospects too. The old Wiluna mine has also been sparsely drilled at depth and most of the orebodies are open on strike and at depth. The expanded Wiluna mill is also very versatile, and can be subdivided back into a non-refractory (say oxide) and refractory (the biox) plant at minimal expense while achieving higher throughput and lower costs.
  • AGC appears to have a very high grade virgin orebody under the salt lake south of the mine, namely Williamson that so far has only been considered as a bulk lowgrade proposition, but potentially could be a materially profitable >10g/t operation if mined as relatively narrow high grade quartz veins (like the historic and current Wiluna underground), with downhole intersections such as 3m @ 20.4g/t above vertically lower down 6m @ 26.4g/t.
  • AGC’s current expected value is about A$1.50 to A$2.00 per share (using the standard 5% NPV applied to gold shares, being A$1.70 or A$100m over 9 years on 58.3m fully diluted shares). However, it has a high sensitivity to grade (which could easily be 10% higher) and that alone could increase the value by ~35%.

Jun 2004 - Agincourt Resources

Agincourt Resources Ltd (AGC) – Heading for 200,000ozpa Gold Production

  • The recent intersections at Williamson, so soon after the Calais discovery illustrate the impact that the Agincourt management team is having in transforming the old Wiluna mine into a potentially long life asset with significant production growth.
  • The approval of the East-West Lode project takes Agincourt over 130,000ozpa, add Calais and 150,000ozpa is attainable, add Williamson and other properties and AGC could be heading towards 200,000ozpa. Our modelling shows that the mills can be kept full just on refractory ore, and treating Williamson could then be achieved through a separate 0.4mtpa or larger mill, and that results in ~200,000ozpa.
  • Calais appears to be a high grade (~10g/t or so) link zone between East Lode and Woodley, extended over 1km on strike and open at depth. It consequently has the potential to become a classic 600,000oz to 1moz Wiluna – type orebody, and depending on the deeper intersections, could even exceed 1moz.
  • Williamson’s transition zone was historically essentially overlooked due to drilling difficulties with the lake rig, whereas from the Causeway access, RC drilling has already produced material intersections such as 36m @ 3.6g/t incl 16m @ 6.75g/t in the transition zone, which could result in a significant non-refractory source of ore.

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