Ann: Quarterly Activities Report, page-25

Hi @FixItDad

Have done the same calcs today before realising yours were posted.

All looks fantastic but sadly the one variable that matters is taken from nowhere.

Can we discuss the grade?

The drill hole they reported on reports the best grades to average 7.6g/t with an average grade of 0.5g/t over 12.7m. These are realistic values.

I want to know where the ore came from that went through at 30.9g/t? No way was that raw ore. Anything over 10g/t would place it in the top ten underground gold mines in the world.
http://www.mining.com/the-worlds-highest-grade-gold-mines/

So when we do calculations I can't see using grades of 10g/t as being realistic.

From the drill hole results, it leaves me wondering what grade ore is going to be processed.

Because using a realistic lower end figure of 40t/day on a 25 day month processes 1000t/month. THats if and when they get it set up and if it runs without further problems.

To make 83 oz (2,500g) from 1000t requires a grade of 2.5g/t. This is the break even grade.

I need to know how NIU is going to put a grade through its plant that is higher than 2.5g/t. Does their break even cost include digging up tonnes of lower grade ore to just put through the higher grade stuff? If the 7.6g/t is 40m down thats a lot of digging and sorting just to put a grade of 7.6g/t through the plant.

So I can't see how estimates based on 10g/t are going to give us anything realistic.


I'm significantly invested in NIU but I'm going to need more from the company to convince me that they are going to be highly profitable.