Morning all.
@FarmdownsouthI am hoping to see more Grade Control Drill assay results yet.
Although it is difficult to determine from this statement.
I don't know if that is saying that they have results back for a further 149 holes or not but this next pic suggests that there are around 80 or so holes yet to come in.
I hope I have interpreted that correctly and can only be guided by this excerpt and counting those dark circles comes to around 90. The numbers in the top excerpt suggest 80 so let's see if we can get confirmation on that.
This next excerpt makes for some interesting reading.
This suggests a grade of 3.9g/t so if we are to work on that number only and use that for the Ore Purchase Agreement, (OPA) we can get an idea of the numbers that could be generated once the mining begins, which is coming closer, ( Mid 2025 ). We are now mid 2025 and Grade Control Drilling is close to an end.
The agreement reads 30-50kt/ month.
Let's use the lower.
30kt @3.9g/t with a margin of $3,200 after allowing for mining costs and processing.
I would expect that, given the close proximity to the mill and the shallow HG mining we should be able to expect an aisc of $2,000, ( I could be a little light on that but we will soon know ) however we are about to move into a higher GP which will alleviate any higher asic.
30kt x 3.9g / 31 at $3200 = $12,077 per month min
At 50kt per month we get ~$20,129,032 per month
If and I emphasise, IF, we have continuity of that output, this will generate cash of more than the mc in the first year.
I would expect that the OPA would have to be reconsidered by the other participant and an offer made instead so they can lock in more profit, but that is only my thinking.
I also do not exclude that this Grade Control Drilling could impact the overall grade in a more positive way in which we could see that 3.9g/t number lifted slightly?
Anyway, I am just thinking out loud for now so take it with a grain.
Kind regards, Wack.
(20min delay)