MCO 0.00% 11.0¢ morning star gold n.l.

is this over the top?

  1. 1,777 Posts.
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    Some ruminations on why I am in MCO, or how I learned to stop worrying and view the glass as being half-full.
    Historically, actual average grades were just shy of 26g/t au or exceeded 27g/t au (depending on which page you are reading on their web site).
    ?This drilling (2008) which encountered some stunning grades in intersections and multiple visible gold hits has outlined further production opportunities in the Maxwell Zone & Kenny Zone.?
    Some time ago on this site from information provided by the company (I think) we were told that ore from these two zones would be the first mined and processed through the new gravity plant.
    From the latest update ? At its initial full production rate the shaft has a capacity of 10 tonnes per hour hauling ore trucks in the new cage. This haulage rate is set to be increased to 22 tonnes per hour when skip hoisting is introduced.
    Shaft upgrades completed to below level 4.
    So, presuming 2 shifts X 6 hrs actual haulage ( allowing for various downtimes) then X 10 tonnes per hr = 120 tonnes per day = 600 tonnes per 5 day week.
    Three (3) scenarios - (1) @ 15 g/t au (conservative, imho) = 300 oz @ $1600 = $480,000 wkly
    (2) @ 20 g/t au (mid-range) = 400 oz @ $1600 = $640,000 wkly
    (3) @ 25 g/t au (historical approx. av.) = 500 oz @ $1600 = $800,000 wkly
    Based on 46 working weeks p.a, then $22,080,000; $29,440,000; $36,800,000.
    Now scenarios when skip hoisting introduced, & haulage rate is increased to 22 tonnes per hour ? presumably can?t happen until shaft upgrade completed to level 8 ? Maxwell at level 8, Kenny level 7,-then, 2 shifts X 6 hrs X 22 tonnes = 264 tonnes per day = 1320 tonnes per week.
    So, based on previous calculations; (1) = $976,000 wkly ($44,896,000 p.a.); (2) = $1,408,000 wkly ($64,768,000 p.a.) (3) = $1,760,000 wkly ($80,960,000 p.a.) (Remember, 46 weeks p.a. & at time of writing actual gold price $1766 per ounce. Also I have approximated grams to ounces of gold)
    Presumptions ? Maxwell & Kenny zones will take more than 1 year to mine (I would hate to be the mine manager, what zones does he have to work towards mining next?)
    Two 8 hr shifts per 5 day week.
    Although we are not privy to MCO?s budget forecasts, (from memory Nick has said 15g/t is in the ball park)we get an inkling as to why N.G is so enthused and the top 50 holders hold 70% of the company. Share price $1 by Xmas?
    Note ? if you are not a holder then don?t get wound up by my musings ? Do your own research.
 
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