"The Month" is upon us..., page-267

Hi bm3121 , , re pilot plan ,what could have been isn't  any more ,I was bitter sure , plenty of negatives and missed opportunities that we have thrashed out and vented.
We also must look forward now, within the next 2 weeks we will receive conformation and verification of the beginning of a potential bonanza.

One must now balance the scales with what we perceive we have lost versus what coyote can potentially deliver, the cost to build in a remote location a 240,000-300,000t process plant, plus camp infrastructure and taking into account all regulations are already satisfied ,  ( time ,money and red tape) is significant, plus the plant  has a historical  proven continuous production feed rate and @ 97% gold recovery.
The kicker here is the lease & option to purchase deal ( 2 mil per year for 2 years @ $600 oz profit =3,300 oz per year takes care of lease ), or at any time during this period an out right purchase
for 3 mil = 5,000 oz @ $600au profit and @ conservative profit  estimations.

Pilot plant : 3,454 oz gold & 266 oz silver  @ 85% recovery from 8,122 t
= revenue @ $1,500au oz gold only of $5,181,000au

Comparison Coyote Plant : if same grade gram per ton gold feed with the proposed commissioning parcel of 10,000t @ 97% gold recovery =4,757 oz gold & 366 oz silver
= revenue @ $1500  au oz gold only of $7,1135,500au

With out production increasing beyond the 150,000t original ore through put production  guidance given and @ the same grade would produce 15 x 4,757 oz =71,355 oz gold x $1,500oz gold = revenue of $107,032,500 and profit @ conservative $600.00 au =$42,813,00 ( profit is conservative as only $600 oz used as after aisc used)
This is with out upside potential of increased plant production through put of again a conservative under capacity  plus 50% and no allowance made for the likely gold grade increase if known high grade zones targeted .

When I make the comparisons pilot plant versus coyote , I am now comfortable with abu's change of direction and pending future .
salt