Australia's largest stock trading and investment forum Australia's #1 stock forum

OGX

0.00%

0.3¢ orinoco gold limited

Hi Hatmopit, You may be right that at 4 grams per tonne we would...

First 16 Last

Share
Profile

Follow
Humphrey2017

396 Posts.

457

02/04/17

10:29

Post #: 23796063
Share

Originally posted by hatmopit ↑

plant capacity = 15t/hr x 4 g/t = 56 g x 0.9 (recovery) = 50 g x 0.9 (approx 90% gold by assay) = 45.4g / 32g = 1.4oz/hr x US$1250 = US$1750/hr

My guess is that with the current plant working at nameplate specifications (14t/hr & 90% recovery - dreams are free) that would hardly break even. So maybe in the future they can get something bigger/better going & process this stock pile but for now the plan of getting out high grade ore & processing it is about the only way of feeding hungry spin doctors salaries & possibly keeping OGX solvent.

I do remember some spin about how they could increase plant capacity very cheaply, can't remember the figures & can not be bothered looking because they can't even get this tin pot HOS going properly so not much chance these geniuses could upgrade the HOS plant and/or increase supply of suitable ore to it.

The question in my mind is, will Angloa want OGX to succeed at crapdeville or get OGX on it's knees so they can take them over for peanuts or better still 'rescue' them from bankruptcy for next to nothing. Watch for the first tell tail signs = Anglo loaning capex with the license as security, run for the hills at that stage.

I personally wouldn't hire these guys to dig a fence post hole but unfortunately got sucked into investing in a gold mine they are attempting to run, so have to either take losses or see how it goes over the next few months & hope someone turns up that has the ability to make what seems like a viable operation on paper, actually work & generate free cash flow.

Mark Twain had figured it out, should have listened to him:

Expand

Hi Hatmopit,

You may be right that at 4 grams per tonne we would be barely breaking even...

However the 4 grams/tonne is what fell off our plant at the end of production!

This is the stuff that our 10 million dollar production plant missed! Many gold companies in Australia are actually very profitable at this grade.

Let me repeat - 4 grams/tonne of gold IN OUR TAILINGS!!!

The amount of actual gold per tonne is clearly A LOT MORE - and the BOD says that this is the LOW grade part of the mine!!?? Low grade compared to what?

If we don't get some changes very soon then the 'loyal shareholders' will have their say shortly at the AGM and it will not be pretty - no matter how much more of the company is given away in the meantime...

OGX Price at posting: 6.1¢ Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

Reply

Top Stories

M2R

Miramar sniffs 5.48% Cu, 54.4% Pb and 73.48g/t Ag at new WA prospect

ASX Market Open: ASX200 set for -0.75% fall after NASDAQ hammered | July 18 2024

SKC

SkyCity to lose NZ$5M in 2025 over complaint closedown

AI stocks: What to expect in 2024-25

WGX

Australian foreign investment regulators greenlight Westgold's buyout of Karora