BLK need to find a few rich veins so that the bulk can be...

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Xthenaki

57 Posts.

02/08/18

08:25

Post #: 34681460
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Originally posted by VYR ↑

It seems no-one knows or is interested in the new director.

Nice to see an Engineer with his apparent depth of experience coming on board.

Hopefully he will help them get on track. All they need to do is revise the mine plan and mine some of that 1.7 g/t feed that the DFS forecast we would be mining in the first two years at an ASIC of $1096.

In the circumstances 1.7 and 1096 are interesting numbers.

They put 535KT through the mill last qty. If one assumes they put 500KT through this qty the forecast $27m cost would deliver an ASIC of 1096 at a feed grade of 1.7g at 91% recovery.

Which I find interesting.

If the feed grade drops to 1.5g/t then ASIC rises to the $1250 which is the low end of the forecast.

The feed grade has to drop to 1.3g/t to kick the ASIC up to $1450 which is the top end of the range.

Re the 0.5g/t tailings.
As management seem to have the mining and processing running at a clip better than was forecast in the DFS I'm inclined to give them the benefit of the doubt.
Maybe they are not totally stupid as all the posts I have read indicate.
Those tailings appear to a novice like me to be a different kettle of fish to the normal ROM stockpile that has deferred mining costs sitting in the balance sheet and needs to be crushed and who knows what else to get it to the same position in the milling circuit as the tailings.
Just maybe, the final bit of cost that is necessary to extract the gold will mean that its a viable proposition.
They will know whether what they have found is viable once they have completed the study which they are undertaking. Lets hope it cost zip to extract and there is a big buck to be won.

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BLK need to find a few rich veins so that the bulk can be blended. Low value deposits are better as large open pit extraction mines.

BLK Price at posting: 4.5¢ Sentiment: Hold Disclosure: Held
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