STTCOMP HEG, FA Long Shares: 1,300m Mkt Cap: $26.m Cash $ low...

STTCOMP HEG, FA Long
Shares: 1,300m
Mkt Cap: $26.m
Cash $ low but has $1m funding facility in place at 0.2c

Major holders have recently been loading up at 0.2c and has recently appointed RFC Ambrain to assist with project development funding as well as assess new projects


From the qtrly
"CORPORATE
•Several investment opportunities are under review.
•The increase in the gold price over the past six months has spurred a revival in the equity funding of gold companies and HEG is among the better positioned companies with advanced gold projects.


PROJECTS
•The three main HEG gold projects of Hargraves, Red Hill and Reward are at various stages of pre-development and permitting.
•The Hargraves project (100% owned) has a Pre-Feasibility Study completed in 2014 for a 100,000oz open pit and low impact processing project.
•The Red Hill project (minimum 85%) is in preparation for a PFS on an open pit project with an onsite processing plant or as a source of ore for an offsite plant.
•The Reward Gold Mine (minimum 85%) requires drilling of the near -surface Frenchmans wide zone and modification of the mining permits.


Hargraves Gold Mine Development Proposal Summary Economics (PFS2014)
•Initial production of ~100,000 ounces over four years at •Production rate 300,000 tonnes per year at 2.5g/t from two initial open pits
•11:1 waste to ore stripping ratio at a pit design gold price of A$1,450/oz
•Gold recovery of 95%
•Pre-development cost of A$2m and project capital of A$13m
•Net profit of ~A$40m after full cost recovery / royalty payments at A$1,600/oz  (Currently $1800/oz)
•Potential for Hargraves development extensions at same production rate
•Potential development of Red Hill deposit may add significant net profit



A spec for sure but big upside given the tiny market cap is they can get funding for their projects and/or acquire some nice new projects