Can you provide one JV deal NOVO have entered into that has...

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readyaimfire

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24/07/20

23:01

Post #: 46062230
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Originally posted by Felix1965 ↑

The following is an extract from The Hedgeless Horseman’s latest article on Egina.

“Remember the following grades that came out of the large scale bulk samples:

Within swale: 1.7 g/m3

Swale margin: 0.6 g/m3

Outside of swale: 0.3 g/m3

Average: 0.83 g/m3

Global average for such deposits: 0.2-0.3 g/m3

Given the amount of orange or better MAK samples I could argue that the average indicate grade over the samples areas within the Egina Mining Lease could be around 0.8 g/m3 and that it approximately covers around 3 km2 of ground. Now what could the theoretical cash flow be from this “tiny” 3 km2 area of lag gravels which is just found within a subset of a subset of the Greater Terrace area?
Example Assumptions:

Area: 3 km2

Thickness: 1.5 m

Grade: 0.8 g/m3

Operating Costs: A$15/m3 (Double Barron’s estimate)

… Which translates into a net operating profit of A$239 M on an undiluted basis. This should be doable by a single continuous miner in one field season I think. Sumitomo will of course get up to 40% of that assuming they keep earning into the Egina Project (which includes the Egina Mining Lease).”

The PIO Kangan tenements cover 268km2. If Novo only found 3km2 as per the above example the pre tax profit attributable to PIO would be $71.7m (30%) which is roughly 4 times the current PIO market cap. A 30km2 area would be $717m, 40 times the current market cap.

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Can you provide one JV deal NOVO have entered into that has proceeded to the benefit of the minor party shareholders?

After near 2 years and in the middle of a gold boom ESS shareholders have nothing to show for giving up a prime opportunity.

ESS management need to hold NOVO to account for EVERY CENT of the $500K NOVO are supposed to spend if they want to hang on to our tenement. The breakdown of the expenditure should be fully detailed to us the owners of ESS.

Enough of the soft touch high expenditure approach to running this outfit.
ESS Price at posting: 11.0¢ Sentiment: None Disclosure: Held
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