This is he email resp I got fr CC yesterday regarding cashburn he also touched on sc and rd.
Ash,
Cash burn about $1m / mth. Got $5m in the bank, no raising planned prior to Red Dale RC results.
Just a bit of a comparison of what Salt Creek looked like pre-discovery and what we now have at Red Dale. At Salt Creek the aircore / RAB gold anomaly was defined by 8 reconnaissance drill holes:
Hole ID From To Interval Gold(ppb)
BNR008 8 12 4 110
BNR009 0 8 8 450
BNR011 16 21 5 230
BNR013 20 23 3 390
SCAC003 38 43 5 190
SCAC008 22 24 2 1760
SCAC040 32 36 4 310
SCAC045 32 40 8 260
In comparison, the Red Dale gold anomalies are currently defined by 39 holes drilled by Integra and another 7 holes drilled by previous explorers (tabled below). The gold grades seen at Red Dale are very much comparable to those seen at Salt Creek prior to RC drill discovery of primary gold mineralisation and the large gold anomaly is approximately 3 x the spatial size of the Salt Creek anomaly. Looking very good at Red Dale with the RC rig due to start drilling there next week. Additionally, the aircore rig is now working on other targets and I would be surprised if there were not additional discovery opportunities generated from this work.
As per my recent presentation, we are now using 1Mt/yr or !00,000oz/yr production as our base case and are targeting 1.5Mt/yr for ~ 140,000oz/yr – the economies of scale are significant from a cost of production perspective but the capital cost difference is very modest between the two mill scales - IF Red Dale and/or other targets come good, we could be looking at an exceptionally profitable scale of production.
Just some back of the envelope numbers for your interest – Southern Cross Equities have put out a short research note where they estimate that Salt Creek currently stands at between 100,000 to 200,000 ounces – say if you were to take the middle ground at 150,000 ounces and given that the mineralisation is almost all shallower than 100m depth (easy open pit depth), and that it would be reasonable to assume a production margin of $300 per ounce – the Salt Creek discovery could notionally be worth $45m of profit on conservative numbers. At a market cap of $75m and a recent rise of approximately $25m, that is not fully reflected in the share price nor is any of the upside not to mention the serious discount applied to our already substantial resources base. Hang in there, we are working hard to get better recognition of IGR’s worth. The annual will be out shortly and there it contains specific commentary re: production.
Regards,
Chris
Hole ID Co-ordinates * From To Down Hole Grade
Northing Easting (m) (m) Interval (m) (ppb)
RDAC0631 25762 16130 56 60 4 135
RDAC0647 26190 16268 52 60 8 539
RDAC0652 26512 15946 48 52 4 132
RDAC0653 26547 15911 44 52 8 281
RDAC0654 26618 15840 40 52 12 386
RDAC0657 26688 15769 44 48 4 442
RDAC0658 26752 15706 20 24 4 91
RDAC0669 26505 16518 32 36 4 195
44 48 4 241
52 56 4 311
RDAC0670 26541 16483 32 36 4 178
40 44 4 313
RDAC0671 26613 16411 48 52 4 190
RDAC0672 26650 16374 48 52 4 191
RDAC0674 26756 16268 48 52 4 220
RDAC0676 26827 16196 32 36 4 205
RDAC0678 26936 16087 48 52 4 239
RDAC0689 25978 16148 52 60 8 504
RDAC0696 26374 15752 24 28 4 148
RDAC0698 26487 15638 20 24 4 381
RDAC0705 26091 16261 56 60 4 105
60 68 8 798
RDAC0709 26317 16034 40 44 4 90
RDAC0713 26544 15808 28 32 4 184
RDAC0721 26204 16374 28 36 8 153
48 56 8 179
RDAC0722 26261 16317 52 56 4 534
RDAC0724 26374 16204 28 32 4 142
RDAC0726 26487 16091 48 52 4 185
52 56 4 999
RDAC0728 26600 15978 48 52 8 318
RDAC0729 26657 15921 44 56 12 251
RDAC0730 26713 15865 44 48 4 344
RDAC0734 26049 16756 48 52 4 919
56 64 8 149
RDAC0736 26162 16643 52 56 4 235
RDAC0737 26218 16586 44 48 4 144
52 56 4 442
RDAC0741 26445 16360 56 60 4 83
68 72 4 84
RDAC0744 26614 16190 28 32 4 157
RDAC0747 26784 16020 28 32 4 125
RDAC0749 26897 15907 40 48 8 199
RDAC0760 26614 16643 44 48 4 119
RDAC0761 26671 16586 28 32 4 149
40 44 4 655
48 52 4 193
56 60 4 546
RDAC0762 26727 16529 48 52 4 513
RDAC0764 26840 16416 32 36 4 418
RDAC0768 27067 16190 48 52 4 92
Hole ID Co-ordinates * From To Down Hole Grade
Northing Easting (m) (m) Interval (m) (ppb)
DA014 6559556 405637 20 29 9 120
DA024 6559556 406037 40 50 10 210
DA030 6559156 406737 50 55 5 160
DA035 6559556 406637 45 50 5 1960
DA038 6559956 406237 45 50 5 430
DA039 6559956 406437 46 50 4 430
DA081 6560356 406337 39 45 6 130
IGR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
