AYC has released au updated Stage One Scoping Study for the A1 Consolidated Mine that will extract and process currently defined resources of 378,000 tonnes at 6.52 g/t au at ex-ORS Maldon Mill.
AYC is currently seeking $2.9M for CAPEX to get A1 Cons into production at 150,000 tpa to produce 30,000 ounces of gold per year for 3 years. This produces an NPV of $27.7M and IRR of 94%. (at A$1,300 oz au) I think Paterson's might be doing the funding.
Funding is due by end of February and IMHO this should be quite achievable given the very strong numbers in the Scoping Study (and boom in A$ gold prices).
At A$1,550 oz free cash for 30,000 oz per year is $18.0M for 3 years before Stage Two production kicks in.
ORS is capitalised at $2.98M and will hold major equity in AYC as will individual ORS shareholders.
ORS at $0.012 is extremely undervalued. Good luck to the long suffering longs, as there is light at the end of the tunnel / pot of gold at the end of the rainbow.
ORS Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
