I think you can hire pre sample style labs. They come onsite sometimes and will provide a company with a running grade report. It tells the company if they are onto the right ore or wasting their time. I guess if you had a lot of targets and a decent program it might make sense but they would be hard to come by in this market. You can also prioritise drill holes if they stand out. Some companies use a portable XRF gun to do on-site ore samples to provide a cheaper analysis. We all know its time consuming and expensive to sit in a long line only to get told you've wasted your time.
Petra dropped out a report today.
Here are some of the details.
Gold production is due to start in the second half of next year according to the company. Petra have placed it out a little longer (their estimate) just to be super conservative but ill take the companies word myself. This 98c target would allow for dilution of the last placement. I think bc8 is trading at half price after dilution. That's friggen cheap. Id try and buy bc8 before it went into production myself.
BC8 buying that plant and using conservative numbers proves that having good management cant be underestimated. That has saved punters a long time and a scary number. You guys can see why a project like this is valuable. There are only a few possible emerging producers and one has already pulled out because they priced it to perfection in a lower cost market. BC8 remains on track for rapid start up.
Black Cat Syndicate Ltd (BC8) BUY Share Price: A$0.55
Getting ready to pounce Target Price: A$0.98
While all WA gold project developers are facing
material/services/labour challenges, we see BC8 with
a 1.5Mtpa milling facility and significant infrastructure
already acquired, being in a better position than most.
A positive FID on the Kal East Gold Project (KEGP) is
targeted for early 2022, and all appears to be on track
(subject to funding) for BC8 to fulfil its rapid start-up
strategy and commence commercial production early
in CY2023. BUY with a TP of A$0.98/sh (unchanged).
BC8 - well positioned in a tough environment
In addition to broad COVID-19 pandemic supply
challenges, the cost environment for WA gold project
developers has escalated significantly over the past six
months on the back of rising material prices (i.e. steel)
input costs (services), and the tightening labour market.
Indications are that the cost pressure on new resource
projects is not likely to disappear soon.
Fortuitously, BC8 acquired in March 2021, two lightlyused Outokumpu ball mills (combined capacity
1.5Mtpa) plus supporting infrastructure, pumps, piping,
motors & spares. The larger mill (0.8Mtpa) is currently
being refurbished at Kalgoorlie by Burgess BLA.
In mid-2021, BC8 procured steel for the manufacture of
the CIL tanks, structural steel for the grinding circuit
(conveyors, feed chutes) and construction offices.
New positions filled during the year include HR
Manager, Environment and Community Relations
Manager, U/G Project Mining Engineer, Contracts &
Procurement Administrator, and Processing Manager.
Approvals in place
Approvals for the development of the Majestic u/g mine
and the construction of the processing plant were
received in Jun. Q’21. Thus, the two mines scheduled
for initial development (Myhree open cut & Majestic
underground) have full DMIRS approval, with approvals
for a third production site (Fingals open cut) expected in
Mar. Q’22 (Figures 1 and 2).
Drilling for growth
BC8 continues to aggressively drill multiple deposits
with the objectives of (i) defining Resources to establish
Maiden Reserves for a 0.8Mtpa Feasibility Study in Dec.
Q’21 and, (ii) expanding Resources to potentially
support a larger 1.5Mtpa Phase 2 production plan.
Key Dates Ahead
Dec. Q’21 – Resource upgrade (Fingals / Majestic).
Dec. Q’21 – Reserve delineation & Feasibility Study.
1H CY2022 – funding, FID, construction (Petra est.).
Early CY2023 – first gold production (Petra est.).
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