Goshawk - Quick Calculations
The Diamond drilling is target right along the grid that already has delivered very high assay readings and all at shallow depths .The grid is approximately 500m x 200m x 50m where exceptional results have been recorded 101gt 67gt, 93gt, 44gt, 42gt, 34gt and multiple hits between 20gt and 1gt. It is therefore safe to say that the grid will average 1gt or more . It is safe to say that 1gt can be used for our calculations and that is being very conservative. In an earlier report it stated that 117 of the drilled holes reported 1gt or more and that is a very high strike rate.
1 square meter = ton.
Area 500m x 200m x 50m = 5,000,000 sm/t
28g = 1 oz 5,000,000 /28 = 178,571 oz
Fast Kinetic recovery rate 95% average
178,571 oz x 95% = 169,642 oz
Approx 700,000t pa or approximately 7 year operation.
Recovery over 7 years 169,642 / 7 = 24,250 approx oz pa
Gross Value per annum 24,250 t @ $1270 = $30,800m pa
Less Operating Costs 24,250 x $800 $19,400m pa
Net profit per year (30.8m -19.4m) $11.4m per annum and net profit over 7 years $79.8m
$11.4m per annum is equivelant to 19 cents per share (Shares 600m/$11.4m) .
This is a very basic calculation at 1gt and therefore for each gram per tonne that the Diamond drilling program will confirm will elevate the net profit accordingly. Say again very conservative that the figure will be 3gt average then our calculation will be $34.2m per annun net profit of $239.4m .
These calculations are not scientific but is a raw guide to the value of the Project.
I have cut the gpt to a low recovery % so the bottom line can only improve once
the JORC is in place. These figures are dependant on gold prices remaining constant
over the next 7 years and the costs are correct. Another thing to think about is the setting up costs and where will the ore process take place. Challenger mine not so far away and maybe Marmota and WPG might strike a deal beneficial to both parties. WPG have already mentioned that would welcome a Toll agreement .
I believe Marmota can potentially have a very lucrative source of funds for the next 7 years or so to enable them to explore all the other tenements they have that surround the Challenger mine. Dont forget the man that founded Challenger is guiding Marmota into a very sound position right now and most of the tenements are grossly underexplored at this stage. The story is getting more interesting .
MEU Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
