Ann: Tick Hill Gold Project PFS Results and Maiden Ore Reserve, page-50

@slivering - it wouldnt allow me to reply to you post.

I've been around the bush quite a few times, and you seem to know what you talking about. Just a quick rebuttal to your two points:

1- Yes, the ASIC jumped since the scoping study. But there's still a fair margin on paper; albeit, you don't know what you're dealing with until you start producing. The difference between CNB and others, whom which failed starting up a mine, is this is an old mine that stopped producing in 1994 - presumably because of the low gold prices at the time. So, unlike others who have failed, management aren't working with a brand new mine. In fact, they are likely to process stock piles to start which reduces risk and raises money...before moving onto the open cut operation.

It's certainly not without its risks...

But, CNB wrote: "The combination of a negligible capital start-up cost from the low risk tailings stockpile reclamation followed by the 6 g/t gold Tick
Hill open pit cutback represents a unique opportunity to capitalise on high AUD gold prices and a catalyst for rapid growth in the future."

This is a relatively straight forward operation that requires little upfront CAPEX. The company won't have to buy any capital equipment and will use contractors for everything, so it can comfortably estimate the costs. Furthermore, as mentioned, it will start buy processing the stockpiles and tailings which is a relatively low-risk operation.

The ore is basically waiting for us to process into gold.

The company confirmed everything written above by saying, "Following a 2 month site establishment period, the mining and toll processing operation is expected to run for a period of 13 months. Mining and processing of the tailings dams and historical ROM pad is scheduled to commence in advance of the development of the Tick Hill open pit, allowing the generation of immediate cash flow and reduces working capital
requirements associated with the development of the Tick Hill open pit. "

The bottom line: minimal capital outlay, unlike other near term producers that failed. Processing ore from existing stockpiles and open cut mine, instead of starting something new which creates significant uncertainly and is high risk for that reason. Furthermore, and most importantly, CNB won't have to go into debt to fund capital costs or get the mine up and running - its a low cost start up, utilizing contractors.

2 - If the company say has $20M dollars at the end of 2021, then of course they will conduct exploration. But exploring for the bottom of an open cut mine is more useful than using geophysical tools above ground. Because you can see with more confidence where the gold is coming from and in which direction, as well as do more meaningful geophysical screening above the open cut mine. So exploring under an open cut mine is less risk than exploring above ground and having no results to lead you. Furthermore, as I have frequently seen in the industry, the company might get to 13 months and keep finding gold from the open cut mine...and extend the mine life out to 2-3 years. This is highly common and, in fact, Sandfire Resources has a 3 year mine life at the start in 2009 (it might have been 5 years or something)...but there are still going and one of the leading copper stocks on the ASX. (Not that this is Sandfire by anymeans...but as you get deeper with mining...you know more about the mine and it reduces exploration and production risk).
Cheers
-Trading For Millions