Originally posted by goldtowin
GT55. Based on posts on CEO.CA/Novo, the Farno operation consisted of the owner and 2 workers. In 6 months of work Farno produced approximately 241 ounces. That's $351,000 for 6 months less expenses less taxes. They were running an excavator and trucks in the middle of nowhere. And had to pay a mill to process the ore. Posters on CEO.CA estimated total income after taxes for 6 months at $100,000. Farno/McMahon got 8 million in cash and stock which according to CEO.CA posters is 40 years of profit with no discount. Duh.
Ok, in order to put a cessation to all the postulating here.
I am a recently suspended poster. You all know me?. Should be able to work out who I am by my recent absence from this and other threads.
I know the SSE and MD of Farno very well. Spent quite a while with him on site late last year, and had several interactions since. I can assure you all that, contra to our learned friends thought on CEO.CA., there was no Toll treating of Ore for the operation at Egina/Station Peak. It was/is a fully permitted Mining operation. Farno had a reasonable Gravitational separation set up there, whereby they would truck some of their spoil and process it to liberate finer course Gold if they thought it was warranted. Their modus operandi was basically a strip mining process whereby they would scrape off 300mm of cover, detect/extract nuggets, repeat, repeat, until nuggets ceased to be found or substrate was reached. If there was a presence of Finer course Gold they would run the spoil through the Plant. Indeed the $100,000.00stated by our friend on CEO I have seen many multiples of in less than a fortnight!
Anyone who's been out on that ground would know that "it's no country for Old Men". The operator is/was fast approaching the wrong side of 65, and though he would not appreciate me saying it here, like all of us, he was tiring. Another reason to sell off to NOVO. And keep in mind, this is not a sell out! Although it may not look too good at the moment, Farno have maintained exposure to the resource in their holding of NOVO equities.
Also WACK., Farno have not retained the alluvials in their deal with NOVO. This relates only to the farm in deal made with DEG-Farno, and now by extension with NOVO. Put simply NOVO have the Egina basin from the Spinifex down.
Cheers,
SxxxxR
(20min delay)