Conceptual guesstimate for Starlight assumes open pit extraction of 200,000 tonnes of gold ore to a depth of approximately 30 meters from surface, which is a very simple, low cost operation performed over an initial period of 12 months. Gold grade is assumed for 8 g/t, 10g/t and 12 g/t (after some dilution). Combined CAPEX and OPEX is calculated at $75K per month site admin, $40K per month utilities at site. Direct mining extraction costs are $10t, drill and blast $1t, grade control $4t. Ore haulage is 15cents per tonne per kilometer, assume 125 kms for $18.75t. Mill processing cost $20-$35t.
Set up cost and OPEX paid in advance for 3 months = $3,828,000.
First 6 months Admin, mining, hauling and mill processing cost for 100,000t total is $7,565,000. Gold ore at 8 g/t x100,000t x A$88.67t (US$1900) = A$70,936,000 for free cash of A$63,280,000. Free cash flow for 12 months is A$126,560,000.
MGV Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held
