Hey Sydney, I love your back of envelope calcs. If the BFS is...

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AlexanderJ

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1311

03/11/20

09:58

Post #: 48604112
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Originally posted by sydneysider ↑

Conceptual guesstimate for Starlight assumes open pit extraction of 200,000 tonnes of gold ore to a depth of approximately 30 meters from surface, which is a very simple, low cost operation performed over an initial period of 12 months. Gold grade is assumed for 8 g/t, 10g/t and 12 g/t (after some dilution). Combined CAPEX and OPEX is calculated at $75K per month site admin, $40K per month utilities at site. Direct mining extraction costs are $10t, drill and blast $1t, grade control $4t. Ore haulage is 15cents per tonne per kilometer, assume 125 kms for $18.75t. Mill processing cost $20-$35t.

Set up cost and OPEX paid in advance for 3 months = $3,828,000.

First 6 months Admin, mining, hauling and mill processing cost for 100,000t total is $7,565,000. Gold ore at 8 g/t x100,000t x A$88.67t (US$1900) = A$70,936,000 for free cash of A$63,280,000. Free cash flow for 12 months is A$126,560,000.

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Hey Sydney,
I love your back of envelope calcs.
If the BFS is anywhere near your numbers (IMO you're probably close to the mark), financing this shouldn't have any probs at all. IMO there would be many options with a great many motivated players ready to take part.

Give it say 12 months from updated JORC to get started incl the time to complete a BFS ..... your thoughts?

MGV Price at posting: 50.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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Hey Sydney, I love your back of envelope calcs. If the BFS is...

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GreenX picks up prospective copper project in Germany

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Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

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