Ok... so, in conjuncture with WBs presentation which is online now (link on the other thread), Wayne mentions that their exploration spend increase to $25m is partly because they are going to heavily invest in Great Fingall drill bit wise. Why... because today's 'Base Case', is just that, the minimum they believe they will be able to produce for at least 8 years. I think just the fact that it has 8 years LOM alone is a big change for WGX. Other than Big Bell, all of it's U/G mines have varying LOMs (basically 1-4 years give or take). Having a new base load U/G mine with the highest grades of all the U/G mines, is really a big step change.
As above, the left side shows what WGX showed in June, now we have hard figures on the right, and... it reads really well. 2.5mt over 8 years = 312k, multiple that by 5g/t and I get 50.4k p.a. That is Wayne being ultra conservative. This not even a big U/G mine yet, Bluebird aims to mine 600ktpa, Big Bell is mining 1.1mtpa. Yet this mine looks to be aiming for the lowest cost....
Then you have Wayne discussing how they excluded the MRE from Golden Crown, the remnant ore and any other structures.
I also find it very interesting that WGX were able to convert 383k in the mine plan, from a total of 588k, 65% conversion is very high. so their confidence in the MRE is high. Also, Wayne clearly explains that the current MRE just for Great Fingall, will expand because their deep deep drilling has already extended both upper/lower Fingall lodes another 250m deeper. A 10 year mine life seems a high probability.
Apologies for the crude graphic, but hopefully it gets the point across.
I forgot to add that Wayne hinted that we will soon see the results of all their drilling conclude in an updated reserve update (which occurred last year in late Sept), which could be around 5-6 weeks away. He sounded extremely positive about the outcome, which will of course include Great Fingall, but perhaps an expansion of Bluebird U/G and... maybe Big Bell?
Nice to see WB include this, as... it's only a matter of time before WGX achieves a much higher production rate.
With only Fender capex to be spent this quarter, I am quite eager to see just what sort of cash generation they can achieve, with perhaps 85% of their gold sold at spot. They might average north of $2820 per ounce, which... might surprise the market.
WGX Price at posting:
$1.50 Sentiment: Hold Disclosure: Held
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