ok.. I will give you the benefit of the doubt on the water side of things, albeit the local strat is very tight and low yielding so supply is prone to running dry.
What about capital cost of a new plant and refurbished underground operation?
Lets says 70M all up capital to build a new plant and refurbish the undergraound and install a new camp etc.
Say 5 - 8 tph plant feed over a 5 year mine life with say an average 5% sb feed grade, you're left with gravity gold and flotation for con's (salable con must be better than 52% - so can shortcut floatation or grind size).Diesel Power to grind this is very high +50kWhr/t down to 70um.
Antinomy is currently running at $8000 US per tonne which is very good by historical prices. Sure you may be able to lock in an offtake agreement for the con's at these rates, which in itself builds in risk if it all turns pair shape (btw the offtake would probably be with china...and you know how they like to play by the rules)
Dont forget if you cyanide the float tail your up for a large tailings dam by comparison as this stuff does not dewater down past 40% solids for extended periods of time - yes that means more water for plant feed also.
So when you add all this up after capital payback and opex for surface and underground operation and reserves as posted, its game over folks.
Good luck as you will need more than prayers with that project.
NWR Price at posting:
8.9¢ Sentiment: None Disclosure: Held
