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10:58
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Originally posted by Freehold
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It seems Convergent was quite bullish on Blue Vein as well it would have been a company maker but I suspect the company ran out of cash before the price of gold rallied this year .Blue Vein Pre-Feasibility overview • Plant capital cost = $23M • Gold production = 43,000oz/year • Average mined grade of 5.5g/t Au • 300,000tpa CIP plant with 94% metallurgical recovery • C1 (cash costs) =A$722/oz • All-in-cost (including all capex) =A$1,188/oz • Project free cash flow = A$23M at A$1,400/oz gold price • Planned drilling designed to increase Blue Vein mine life So Convergent had planned to expand the resource at depth by drilling ... This now is what I expect the KDR drill program plans to achieve. Whether or not they intend to revamp the old mill for Gold (and why not add lithium?) don't know. Perhaps they intend to Toll Treat ore for gold also in the short term?
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Plant capital costs are low which is the benefit with old/existing mine infrastructure in place. The $23M should easily be funded if the resource size is expanded at depth.
