with regards to PGI announcements...... The objective is to...

with regards to PGI announcements......

The objective is to complete the technical and economic evaluation for the demonstration plant by mid-2017 with construction and commissioning within 12 months of a decision to proceed with the development.

(This meant a mid to late 2018 start of China operations)

PanTerra Gold Limited – ASX Announcement 27 April 2016
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It is intended by both GGC and PGT that a development decision be made in early 2017 with the aim of production commencement by the end of 2017.

(This shows a bring forward of 6-9 months)

PanTerra Gold Limited – Quarterly Report to 30 June 2016 20 July 2016

On a different China note:  the China plant input is for 25,000 tpa and a 25,000 oz p.a production, in each stage up to 75,000 t.p.a

My undertanding from other than PGI announcements that concentrate will be 50g/t.  To achieve the above this implies the Chinese plants are expected to achive 62.2% recovery.

There are two significant technical overhanging risks.

1. Really????
2. when blended material is fed into DRplant, how will the completely different mineral structure/grind finess and resultant extraction fare between the two ore sources?

Plumping for rght down the middle guts, the current 40,000 will go to 30,000 and the new stuff at 62.2% is 50,000 x 50 x 62.2%/31.1 (gm/oz) = 50,000  Total blend output becomes 90,000 oz. pa.

This is similar to suggesting putting Pauline Hanson and Bill Shorten in a room together and expecting balanced policy outcomes. The process will be sloped more one way than the other, so it won't be 90,000 maybe 75-80,000 if you do calculations to check the value.

My bet is that pricing will be 50:50 of the remainder with inputs being pricing for arsenate concentrate and PGI published C1. At $400 for concentrte and $680 for PGI  (30,000oz but assume a total cost based on 40,000) and $120 for the 40,000 and POG at $1300 and for 80,000 oz PGI total C1 cost $32m p.a

Costs  PGI/oz = $400/oz av.   Total costs 400+400 = 800.

PGI share = 80,000 x 50% (1300-800) = $20m pa. to spend. How does that compare to the current situation? First blush, a fair bit better and not exlosive BUT the mine life is extended, and use of other peoples material is demonstarted. Interesting this cash > the current market cap!

[As a thought experiment POG at $2,000 PGI's spare filthy lucre is $48m. If we didn't have debt to pay, one years cash would have, on current 131m shares,  36c each excluding all our new friends. If some credility that this could be sustained at these prices thats about $2/sh, but back to $1 when we are joined by all our new friends from CAMIF and the "associates", those colourful racing identities we don't know anything about yet.

Meanwhile, away from the land of dreams,  just goes to show how all the upside has been managed away by PGI folly during the plant build and poor commissioning leading to the engagement with the blood sucking vampire octopussies. (Thats deliberate. I do know how to spell the plural of octopus.)

Anyway, as things stand, dRG is likely to get the approval by early next year. Tis is essential and DRG know nothing wil progress in China or any other third parties without the approval. So we can assume this is done and dusted.

It appears to me there is no concentrate available at the moment from anywhere.  Third parties will wait until DRG sign-off. So don't expect any concentrate until after Q1 2017. Plenty of stuffing around Q2, maybe something stable and reliably earning money by Q3.