CAI operation seems to become worser, page-13

First 13 Last

Share
Profile

Follow
plough

34,003 Posts.

1852

28/03/24

12:48

Post #: 73103114
Share

Originally posted by Watchfulbull ↑

Correct. That is the main reason for where we are at. Klondyke open pit grade. So many contributing factors but this is the main one. Some may say hedging is the biggest issue, but that was an unaviodable finance requirement. IMHO had we had the grade, we would have the expected Oz which would lower the AISC and have left a much higher % exposed to spot.

Dont know whether it was incorrect modelling or underestimated ore dilution from blasting/extracting (or both), but eitherway it was/is substaintially less than 1-1.2g/t that was intially planned. If we had gotten close to those numbers we wouldnt be here. We had to re-jig the whole mine plan because of it.

I used to really see good logic in the hub and spoke model however it is yet to be proven correct. The spokes need to big/strong enough in their totality to support the overall wheel frame (company). Can we manage all these small satellite deposits efficently and with minimal errors along the way. They have good grades, in some cases brilliant grades, but what is the real cost (and risk) of moving from one site to the next. Perhaps building a much bigger more reliable resource before building the plant would have been a better strategy. Admittedlly we got a 200M plant (in todays build cost) for about 120M. Time will tell I suppose. I will contiue to hold but I wont be participating in this raise. If CAI is a sucess it will blow way way past my average, and so a few cents here and there doesnt matter. I have enouigh skin in the game at this point. I might pick up a few of those 17c options though.

Given the whole restucture, it can work moving forward but it needs a few things, not just one thing, to go its way.

In the short term we need March quarterly to confirm the positive pattern of higher daily oz production (announced with CR preso). If they can report in the March .... "the last 3 weeks of the qtr has seen record production levels, and this has continued into April operations" that will start the building of confidence. Then hopefully they can provide some further monthly production updates, all ending with a confirmatory June qtr production of 20K oz.

Fingers crossed it the worst investment strategy, but unfortunately that is the case for this one.

Expand

Never thought of a Hub and spoke from a corporate wheel frame perspective , Bulletin will give some much needed grade , all academic to me as I sold out .
Regarding satellite pits , air core drilling as got a lot cheaper something like $25 a meter currently , wonder if it would be worth drilling along strike from some of those satellite pits to see if they can find shellow high grade ounces , was speaking to a MD geo yesterday who is doing just that .

CAI Price at posting: 11.3¢ Sentiment: Hold Disclosure: Not Held
2 Upvote

0 Great analysis

Reply

Top Stories

CXU

Cauldron discovers shallow uranium up to 2km at WA's Yanrey

BPM

BPM Minerals hits high-grade gold at the Claw Project WA; shares jump 86%

PAR

FDA hands Paradigm Biopharma guidance to re-jig phase 3 osteo trial – or is it a delay?

HVN

Harvey Norman clocks subdued gains as Echo Law's junk warranty class action kicks off

88E

HotCopper users smell capital raising as 88 Energy says "significant update" at Phoenix

There are more pages in this discussion • 5 more messages in this thread...

First 13 Last

Add CAI (ASX) to my watchlist

(20min delay)
Last 11.5¢		Change 0.000(0.00%)		Mkt cap ! $93.67M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

CAI operation seems to become worser, page-13

Cauldron discovers shallow uranium up to 2km at WA's Yanrey

BPM Minerals hits high-grade gold at the Claw Project WA; shares jump 86%

FDA hands Paradigm Biopharma guidance to re-jig phase 3 osteo trial – or is it a delay?

Harvey Norman clocks subdued gains as Echo Law's junk warranty class action kicks off

HotCopper users smell capital raising as 88 Energy says "significant update" at Phoenix

Featured News

Featured News

CAI operation seems to become worser, page-13

Top Stories

Cauldron discovers shallow uranium up to 2km at WA's Yanrey

BPM Minerals hits high-grade gold at the Claw Project WA; shares jump 86%

FDA hands Paradigm Biopharma guidance to re-jig phase 3 osteo trial – or is it a delay?

Harvey Norman clocks subdued gains as Echo Law's junk warranty class action kicks off

HotCopper users smell capital raising as 88 Energy says "significant update" at Phoenix

Featured News

Featured News