Yes, $166M operational profit in year one based on the 2.2g/t 1.5Mt mined for 1.8Mt PA mill. That is not actual profit as other expenses have to be factored however it does indicate a wildly profitable start to production that can pay back any debt needed. I would prefer GL1 cash flows, possible sale of Ularring or dilution to build a mill. But that is not relevant to what the Board will decide on at the time given what opportunities exist at that point in time.
That initial pit is cherry picking the OP of course. But a few layers down in that pit and a portal could be established to start to exploit UG ore at a higher grade to supplement the remaining OP Resources.
The eventual level of transition from OP to UG can happen in one area as options abound on a deposit of this scale. The best may be found yet over in the syenite top the east that has a chemical (Fe) and physical (fractured) proclivity to trap gold from fluids - pure speculation - but we have proof that abundant fluids found their way into this huge system. Any high grade pods found can feed the mill so they do not have to be economic as stand alone deposits. This is one hint as to why the Board and NA investors wanted to keep drilling. It just makes sense.
DYOR folks, and thanks for the input from readers it is always interesting. Regards, CW
Are you all watching the gold thread? Several interesting posters in there so it is worthy of interest IMO.
BRB Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
