Well tomboy..Average Density is 3297. My calculations are fairly...

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sircorp

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31/08/21

22:45

Post #: 55730771
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Originally posted by tomboy: ↑

1 cubic meter of Nickel sulfide weighs 5 660 kilograms [kg], if low impurity high grade then even higher maybe double this

GS is now currently defined as a 3 lode ore body 70m length & 250m height with good widths

put in 230m x 70m x 5.3% grade x Ni sulphide weight 6k kg per metric cube
thats a 1.1M cubic metre volume x 5.3% x 6k kg
thats 350kT say 9.5% recovery
My calculations show 33kt at 5.3% grade, Thats way better than MCRs Cassini -

• Maiden Cassini Ore Reserve totals 1.05Mt @ 3.3% Ni for 34,300t nickel
• Cassini Ore Reserve excludes the recent significant drilling intersections of 17.6m @ 5.0% Ni announced on 6 January 2020 and 8.2m @ 7.6% Ni as detailed in the ASX announcement dated 18 March 2020

GS LOM would be 4 years
SS LOM we know is 3 years, these 2 will likely be combined in the DFS
BS open pit LOM is 10 years
BS disseminated is likely 7 years, likely combined with the W ore of 7 years LOM

If they hit more at upper golden swan hole 31 area (called ST but actually northern GS) & at SS deeps then the LOM for GS/SS could blow out to 10 years excluding BS low grade but we also know circuit 2 is for low grade so theres another 10 year LOM there also.

Imagine if they declare a DFS of 15 years for circuits 1 & 2 at a capex of $45M (with cash $33M, $12M debt) at an av grade of 2.5% with AISC of 4.05 uslb (high margin) production of 15ktpa when NP is now 8.90 AUD$73c.
Thats revenue of $400Mpa & an EBITDA of $200Mpa.
400/200 = PER of 2.0
WSA PER is 33.0, a massive 16,500% difference!

If they declare this DFS then we are off to the races.
Everyone forgot the plant and other large JORC they have. Market would be stunned.

My calculations show GS at 33kt at 5.3% grade
Anyone else in geo area from the $2 club care to guess the GS JORC & DFS now the GS assays are all in?

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Well tomboy
..
Average Density is 3297. My calculations are fairly thorough.

Best case for Golden Swan is 29845(kt) Contained Nickel while 25,000(kt) Contained Nickel is a safe bet.

POS Price at posting: 13.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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