Agree Bond, surprised why a capital raise is required
As per Empire report March 2018
Empire places a conservative estimate on the total sizeof the tailings stockpile of around 30,000 tonnes.
At an average grade of 9 g/t and recoveryrate of 90%, Empire places an approx. valuation of $11.3M for 8,570oz (contained gold) onthe stockpile with room for this figure to increase as exact figures are finalized. We believethe stockpile could be at least double this number but remain conservative at this stage.
Empire conducted conservative revenue forecasts for OGX relative to the projecteconomics, nature of the deposit and resource size.
Based on a mine throughput of 100tonnes per day, operating 6 days per week at an average grade of 20 g/t Au, Empireforecasts US$8.3M a year in free cash flow, including processing and operating costs.
For athroughput of 200 tonnes per day, based on the same premises as above, Empire forecastsUS$16.6M a year in free cash flow and US$39.8M a year for a throughput of 500 tonnesper day.
These figures take into account a recovery and dilution factor of 70%, US$ 1,300ozAu and cash costs of US$500 per oz.
Empire realizes these figures are conservative and thethroughput of 31,200, 62,400 and 156,000 tonnes per year, respectively, leaves a lot ofroom for future growth.
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