Ann: First Gold Pour from Agate Creek Gold Project, page-54

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dugsab

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24/04/19

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Post #: 38255788
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Originally posted by zdog13: ↑

I have held this stock for a long time. Comments about management earlier I can’t quite shake. I believe they were/have been very remiss in comms.

All boxes have been ticked and mining is underway. This is a plus for accountant types. They have arranged an agreement in which they do none of the heavy lifting and still get a money in the door provided the grade is sufficient.

I note that the upgrade in drill results were only announced after all native title and landholder agreeements were finalised using much lower grades. Call me what you want but I see this is being very astute. None of us know the agreeements but I hope that directors are looking after themselves because that will mean they are looking after me.

So I come to the actual results. 15g/t - the directors surely picked some good areas to start. Why would you not! Get as much money in the door early. Why leave it in the ground!

Maroon took a week to extract 1300T of the 100k T in the agreement. At that rate they have about 70 weeks to mine. Let’s call that 2 years for wet seasons etc

I haven’t don’t drill hole calculations I know there are some very impressive grades. So I’m going to go conservative based on current wash up. I’m going to assume 7.5g/t for the rest

7.5 - 3.5 = 4g x 0.6 = 2.6g x 98,700 = 250k grams total

That equates to about 9000oz x $1800 is $16M in 2 years.

This is only part of Sherwood resource that has approval to mine.

At a market CAP of $50M a PE of 10 mean the MC should be around $80M (circa 2c)

I for one will be watching the upcoming pours, the achieved grades and hopefully the SP. however in order to do that management need to keep up the levels of recent communication and not slip back into old ways.

I agree this is still a spec stock - however one that is mining and has less risk than most. If the grades are tighter than 7.5g/t I see nothing but upside. Lower then we probably can not sustain the appreciation that all would like to see in the SP.

It’s a fine line, mine the high grade now to get mo way in the door at no cost, or mine just enough to retain as much of the 40% later as possible. This is where i see the benefit of having the bean counters in place. If they look after themselves in the long term, they will also be looking after me!

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Hi Z,

Could you please show me your detailed maths behind your 70week assumption.

Last Ann stated:
”Mining and Transport is currently expected to continue for approximately another 10-12 weeks.”

Based on:
”Processing rates are currently approximately 15 tonnes per hour with this rate to be steadily increased over the coming weeks with 25 tonnes per hour being targeted.”

Thank you

LNY Price at posting: 1.3¢ Sentiment: Buy Disclosure: Held
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Ann: First Gold Pour from Agate Creek Gold Project, page-54

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Ann: First Gold Pour from Agate Creek Gold Project, page-54

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