Melua, are you allowing for the heap leach operation?
I have a 20,000oz target (per year) based on 2.9g/t ave feed grade over 18 years for the 3.2mill tonne at 2.9g/t resource at both Burnakura and Gab through a 250,000tpa CIL plant.
I then assume 750,000tpa through the heap leach with a 70% recovery at an ave ore grade of 0.91g/t for 15,000oz per year over 14 years.
Total 35,000oz per year over 14 -18 years based only on the current initial resource.
Then I would assume at some point, a stage three expansion to bring the mine life down closer to 10 years . An 18 year mine life seems too long especially as they add to the resource base.
I guess the timing on that will depend on whether or not they decide to use available funds elsewhere instead, e.g. Andash development or aggressive Jervois exploration.
Any way they do it will add significant value.
I have recently increased my assumptions for exploration and admin to 4 million for each, but I have also brought down my cash cost assumptions for the heap leach.
A 450,000 tpa CIL plant together with the heap leach would give me a target for Burnakura of 20c for a forward PE of 9.1 with a 10 year mine life with very strong exploration upside for gold, and gold and copper from Gab to add to mine life.
Like I said, that may not happen any time soon, but if the funds went to Andash instead, them the target is much higher any way.
Then Andash cash flow over just one year will pay down Andash debt and provide funding for a Burnakura expansion.
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