The reason the gold is only valued at 12m is because investors...

The reason the gold is only valued at 12m is because investors don't believe the project will go ahead anytime soon or at all.

The constant rejig and rearrangement of mine plan (toll treat, starter pit) shows the project lacked robust economics as a standard open pit UG scenario.

First they need the resource upgrade that was due in Q4, (understandable this is late as assays were delayed). They then need to prove to the market some solid economics of the project which they will hope to do in the DFS. However, If on time, this is still months away. Expected at the end of 2023.

Is the PFS still happening or are they skipping this? It was mentioned but is missing from the presentation.


The open pit grade rapidly declines below 150m down to 265m in the open pit study, causing strip ratio to triple over this depth.



If tonnage and oz's were a lot higher then grade wouldn't be as much of an issue. They could build a bigger plant which would mean a higher capex, but more throughput would lead to lower processing costs.

Unfortunately, I don't see drilling from last year adding very many meaningful oz's.

Breaker is in a sticky situation. The meaningful oz's to warrant a bigger plant can now only be found at depth following the continuity of the two lodes. But as they have realized this they have also come to the conclusion that it is too costly for what they are finding at depth.

Hence they are trying to start small with a plant that can be upgraded and starter pit to go UG..

This won't lower processing costs but it means drilling costs will improve once the decline is in and they start drilling underground. It just means they can't go for the high throughput option which leads to a riskier venture and lower cash flow in it's early years. It also means divi's will be slim to none as margins will be tight and they will need money for plant upgrades and underground drilling as well as further mining studies along the way.

Trying to keep an objective view but that's how i see it for now..