Hi Spec , I did not mention Gilbeys North OC or NN OC as the...

Hi Spec , I did not mention Gilbeys North OC or NN OC as the poster I was responding to wanted to know CAPEX .
At first sight , I doubt either will cost much CAPEX to get to , over berden looked minimal and GBN , NN OC seems to come to surface and GBN is a cutback .
Still the strip ratio will be high initially for both .
The last update map showed a thin tinge of turquoise at surface that was not there before if you look closely . I did have NN OC in the spread sheet I posted about a month ago in the mine plan , it has to be low hanging fruit just like what Joelstar mentioned with Sly Fox /Gilbeys East

However at one stage there was mention in a news release of $120M in CAPEX needed for deepening Gilbeys , and the company has burnt through over $200M to date so I have to temper my optimism with hard facts , Also Gilbeys reserve is considerably lower grade than indicated probably because economics of extraction comes into the equation , and is it really worth spinning the wheels again blending that low grade/ high strip ore ?

Yes $50M is a possible CAPEX , most of these miners and us "speculators" underestimate CAPEX , but if you add in working capital (sheet happens) it is probably justified , even though the Perth mint pays quick .


"While I understand why you are highlighting that as they go deeper it will cost more, but... that is just U/G mining, and to date, the grades are getting better."

Yes that is how I look at it to , probably did not explain it correct , The CAPEX goes up but doubt if it goes up on an oz basis and probably OPEX goes down per oz for the reason you mentioned higher grade, and the ultimate number NPV improves .

"In very simplistic terms, if GCY can secure a 5 year mine plan with 120k+ p.a profile, of 100% reserves, then.... the market cap would hopefully be closer to $300m (and raising $50m won't be a challenge, though debt is probably preferable if the share price does not rise), double that if the first few quarters go well, etc. All easy to type on HC of course, a lot of hard work needs to be done to achieve that."

Agreed , although hard to predict market cap for an ugly step sister of BGL as often a subjective opinion like looks .

Maybe just maybe if they do some met tests an can prove the uncut drill core in that last drill intercept is a truer indication of recoverable grade and that replicates on other drill core , that would add up to 70% more in ozs than have been reported to date on the non announced wireframes they are getting plus around 50 gram hits in ?