SVG 0.00% 2.9¢ savannah goldfields limited

Ann: Outstanding High Grade Gold Drilling Results, page-165

  1. 22,823 Posts.
    lightbulb Created with Sketch. 769
    IMO, its all about market trust in management:
    Can it deliver on what it has intimated it will do?

    That is produce 79K ton of ore at an average grade of 6.1 G/T and later better than that because of higher grades discovered during mining.
    This has been revised to a probable 65K ton at higher grades but no reduction in gold which means, according to the processing agreement more
    $s for LNY.

    So let's look at the WORST CASE scenario:

    79,000 X 2.6 X 0.6/31 X $1830 = $7.275 mil.

    If LNY can produce this amount of gold out of 65,000 ore then it will likely get about $8.5 mil because of the nature of the processing agreement.
    To process 65K ton @ say an average of 20 T/P/H would take 3250 hrs or about 4.5 months.
    Processing started mid April so that would take us out to August.

    In the interim, drill results are proving very positive and, IMO, will at least double the ore processable under the current contract

    So the question I have to ask to the nay-sayers is:

    If the worst case scenario yields LNY over $8 mil come August, what is so negative about that?
    Many on these threads think that it will be closer to twice that with the added bonus of probable further positive drill results.
 
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