Hi mainholm,
Mate, i understand you have found what you need but thought i would share for others that may be new here that are interested.
There has been so much nonsense posted on this thread from posters that for me is simply not true, people come here and post things like "wiluna is a graveyard" or "theres is no gold in those Matilda pits" , "BLK don't have oxide ore, Wiluna is refractory by nature" etc etc... Is just people trying to scare people away or manipulate the stock to their advantage as it has limited shares on offer, or what ever their agenda may be??
As i have clearly researched the stock and i am extremely confident about the company and their assets, so when i hear such rubbish i instantly indicates to me who ever is posting such nonsense that they infact have done no actual research at all and as such, are mearly using a headline to influence people in some way!!
So in return it give me an easy opportunity to correct them with actual researched facts!!
As cdchi said he has been kept away from BLK due to not knowing the full story basically, thought they were going to process refectory ore, same boat as Apex etc... So when people use the statements like above the general public dismisses BLK as a result, But the fact is is as cdchi points out, BLK free milling side is a totally different operation, so this is the very first thing people need to understand, BLK's 80% free milling ore strategy all coming from open pits within approx 150m from the surface at this stage has very limited risk involved when compared to refractory side, BIOX and mining 1000m underground.
As for the refractory side it is my understanding that BLK needs to spend big $$$ to prove up resource underground properly, amongst getting all underground safe again pumping water out etc..As Nabaru01 has rightly pointed out, mining has become harder but certainly not impossible,,,,,But in relation to ore, they need to find another Bulletin basically, or utilise a number of deposits for ore feed similar to what NST does at Jundee(AISC $1008)....But most importantly the ore grade has to be at least a proven 5-6g/t to be economical!
As for the plant well once again lets not forget that the Wiluna plant operated and processed mainly refractory ores using its state of the art BIOX system in the day for 18+ years with no problems even comparable to Apex, that for me tells the story right there!
I believe that first and foremost Apex management didn't know WTF they were doing and probably didn't care, in their mine plan they didn't have enough ore from underground to keep the plant "FULL" and the grade was uneconomical at 3g/t from 1000m depth?
I understand that in order to run the BIOX properly you firstly need consistency, i presume once constancy is achieved you can lift throughput in order to do both these things you need ore supply which is what Apex never had as they only ever used the plant at 30% capacity at best, due to lack of cash being available as a result of under production, even when they had the ore they couldn't get it to the surface as result of broken down fleet equipment/trucks and or the power plant shut down as there were no $$ put back into maintenance here either.
As for having a handle on the refractory side? If they implement the above by taking time and $$ from Matilda project and slowly build up a resource underground, i am extremely confident they have everything needed including personal to utilize and optimise the plant for milling refractory ores and if done correctly BLK could produce 230K/oz pa if they get higher grade than 6g/t like maybe 8g/t they will be over 250k/oz pa as a result!
Make no mistakes BLK are all over this! And they will be going underground at some stage because the profits form this are huge in fact double BLK could pull $60m pa from Matilda open pits and $125m pa from utilising underground sulphides!!
re; the Debt of $36m i hope and i don't think they will dilute holders, with current POG the debt is not looking like a problem for me, in fact i think it shows how confident these guys are about this project!
Whilst every one is concerned about the debt etc we really need to see the DFS to get an understanding of the project, i am happy with the debt off PFS, but this was done of a scoping study completed in 2012, how good can the DFS be, why are they saying divis to be paid etc??
One question i ask myself, Why did they need such a big LOM i.e.; 10 years for a small 100k/oz producer? And this is just a guess and speculation but my guess is that they will be at least producing 120k/oz pa in years 2,3,4 etc. if not in DFS more likely once in production if they get enough high grade 10g/t+ ore from Golden Age and Galaxy as it gets taken down 150k/oz pa there fore giving BLK a LOM of 6-7 years?
We are already a potential 100k/oz producer of PFS, the now proven 9-14g/t ore has to have significant impact to extra production and extra $$ to the bottom line, its that simple, hence the huge increase in interest since announced!
I look forward to Nab's comments also?
