It is difficult to drill cost effectively to reserve status with these kind of gold deposits. Your continual harping on about this make you look uninformed. MCO drilled a 910,000 Ounces Gold JORC Resource, sure it may not have been 100% accurate but to say that there are not reefs able to be profitably mined in the upper levels will be proven wrong.
The head grade from October works out to be 13g/t from MS, and the average grade from the RoD trial mining was around 5g/t, if the recovery improves from the plant enhancements lifts the grade to 7.5g/t it would be half the head grade of MS. If the plant was fully utilised then the total gold produced would be around 2500oz per quarter, giving $6m in revenue per quarter.
Lets say the production cost doubles to mine both which gives a quarter running cost of $3.6m and a profit of $2.4m per quarter or roughly $10m p/a.
Given the current gold price and a full capacity plant on MS and ROD ore could be making over $10 million profit pa.
At the current MC of $8m is a PE of 0.8
That is not ramping, this is based on actual figures and a couple of small assumptions.
Where is the BoD, page-113
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