The other thing to remember too is that the metallurgical assumptions used in the PFS are from first pass metallurgical testing i.e. we only finalised the Sangar drilling a few months before it the PFS was due.
The PFS gives 5.9% with 70% recovery because we had to rely on that initial testing, otherwise the PFS would have been late.
The metallurgical testing they are doing
right now in preparation for the DFS is likely to produce a much better recovery for 6% concentrate imo. Considering the suggested process flow in the PFS, similar projects almost all seem to get 75-80% recovery rates. Most of those similar projects have a lower grade than what BGS will feed, and we ALREADY have testing from the Main/West areas that indicates higher recovery rates.
This would be a boon for BGS as it will increase NPV and IRR significantly. Personally at this stage I would be happy if the board focused on really cutting the capex down too so we are just paying for a 2mtpa plant. 4mtpa is obviously an option later on but focusing on a streamlined design for 2mt will mean less dilution, even higher IRR, higher NPV and push this project through quicker. Worry about future expansion when the time comes, because the market only cares about what is next, not what is over the horizon.
If they look into the possibility of reduction of unnecessary capex & are able to clean up the existing metallurgy...board will look v.good in my eyes.
Listening Greg?
(20min delay)