The company is eyeing a total gold haul of 635,000 ounces over an 8.3-year mine life with annual average production of 71,000 ounces at a solid 1.3g/t. Notably, the operation is expected to recover 92 per cent of the gold.
Operating costs are projected at just US$1182 (A$1818) per ounce, with all-in sustaining costs of US$1490 (A$2292), both comfortably below Datelineโs revised gold price outlook.
However, the real kicker may lie beneath the gold.
The company believes the Colosseum site could also host a rare earths deposit similar to the world-famous Mountain Pass mine, 10 kilometres down the road.
Production at the carbonatite-hosted Mountain Pass mine kicked off in 1952, at an extraordinary grade of 7 per cent total rare earths. The mine was the worldโs dominant supplier of rare earths from the 1960s through to the 1990s and shares the same geological setting as Colosseum.
Preparations are well advanced to test the theory with targeted rare earths drilling as part of an upcoming exploration program.
The company is also zeroing in on hidden breccia pipes that appear to line up with Colosseum to the south.
Recent field mapping and rock chip sampling of felsite outcrops – a key volcanic feature often linked to gold deposits – revealed the geochemical fingerprints of a much larger mineralised system. The samples returned strong hits of pathfinder elements such as antimony, bismuth and tellurium, all hallmarks of an intrusion-related gold system.
With Baghdadi tipping in more than $1 million of his own cash, punters are likely to have a good reason to take a closer look. Senior management making such bold cash commitments can often signal future success.
As the global spotlight intensifies on gold and critical minerals, Baghdadiโs timing appears near perfect.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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