Ann: Significant Upgrade for Old Pirate sets ABM , page-20

re: Ann: Significant Upgrade for Old Pirate s... Nabaru, can you see any reason why they can't use a large excavator to move the bulk waste and a small excavator to finish cleaning up around the veins?
Each deposit is different. This is not a large low grade bulk mine.
Maybe talk to Darren about the planned mining procedure before deciding it can't happen as I described.
I expect there will be some areas where the mineralised zone is made up of narrower veins where there will be more mining losses/dilution compared to mining the wider veins, but overall the losses and dilution should be much lower than typical and head grades should be better than the resource grade.

The trial mine will show us what to expect soon enough.
13g/t, 10g/t or 8g/t; any of these will be extremely high grades for open pit and should send the price higher.
Even as low as 6g/t is a very high grade from open pit.
SLR just reported strong margins from a blended grade well below 6g/t (mostly u/g ore).

I use my spreadsheets because they are an excellent tool and have proven their usefulness over many years.
As I have explained before, they do not fix my assumptions.
An assumption is just that; a best estimate at the time based on the available info at the time, but easily changed. Spreadsheets are so useful because I can so easily change variables such as head grade, throughput, gold price, exchange rates, cash costs etc as the need arises to see the effect on profits at the click of a button.
Not sure how you can say the mc will limit this to a 2-3 bagger. That suggests the mc can't climb above $450mill.
NST climbed well above $500mill with Paulsons mine resource currently sitting on 400koz at 5g/t of mostly u/g inventory. We now have 600koz at 10g/t top cut (over 700k at 12g/t uncut) and much of that will be open pit. That’s 50% MORE resource at DOUBLE the grade and most from higher margin open pit mining.
No reason why our resource is not going to be worth at least 50% more than theirs once proven by production as theirs is.
While I can’t see anything like a 100 bagger as Andean managed (mainly because of our higher starting mc), I can see significantly better than a 2-3 bagger.

U812, For now I am looking for a re-rating to around 12c after trial mining assuming we verify at least 8g/t average grades.
The company is aiming for 10g/t, and I expect that we will see at least 12g/t.
How high the price can go will depend on (in order of importance as I see it) how large this resource grows, further GH type discoveries, grade, margins being close to expected, the potential contribution to mine life of high grade zones of Buccaneer, POG.
Beyond that, with a strong cash flow we can step up exploration elsewhere and look at acquisitions.
With the right acquisitions and cash flow to develop them, how do you put a limit on upside?
That’s long term though and these days the market doesn’t seem to look beyond months or a year so the best gains are likely to come from patience.
Let's see the trial mine results first and then see how many more ounces we add this year.
As I said previously, if trial mine shows better grades than expected, then the current resource will be revised up to contain more ounces from the same veins so we don't necessarily need to wait for exploration success to see the resource grow.