textbook pullback = time to top up!, page-16

Mostly agree FMX except I would expect a higher grade (I know you said you were being conservative though).

The scoping study was looking for a head grade of 11.5g/t.
That was before GH was discovered (103g/t ave grade over 60ms of surface sampling compared to 24g/t for veins in jorc used in scoping study).
Even the new Western limb extension had 42g/t- nearly double the average grade of the jorc veins.
East vein more in line with jorc vein grades.
Overall, the addition of the Western limb extension and GH should increase average grades relative to the 11.5g/t allowed for in the scoping study.
I would also expect that the jorc resource grade is lower than it would have been if the jorc was limited to the top 5-10ms.
That is because the drilling gave significantly less information than the more extensive surface sampling so a conservative jorc estimate to 100ms depth must give plenty of weighting to the more sparse drilling info rather than just the surface sampling.
So it should follow that a very shallow trial mine could produce results of at least 15g/t?

If they mine GH down to 10ms deep with around 15ms average width over 60ms, the grade at GH appears as though it may average around 20g/t over that area.
The narrower they mine the closer the grade would approach the grade of the main vein at 103g/t.
If they mine the much higher grade 30m length, grades will again be much higher.
Assuming the 15ms width by 60ms long by 10ms deep would result in around 21,000 tonne.
Allready twice the 10,000 tonne and no room for anything from OP.

They obviously will have to take much less from GH.
If they want to boost cash, they could take a larger sample from the very high grade part of GH (perhaps averaging closer to 70-100g/t) and smaller samples from other parts of GH and OP.
I.e. skew the sampling a little to higher grade zones but still take enough from other areas to get enough information on them.
It’s a pity we couldn’t go with 20,000tonne.

If they get the average grade at 15g/t, that’s around 4125oz at 88% recovery for $7mill revenue at $1700 gold.
20g/t might be achievable and would boost revenue to $9.3mill if the company chooses to boost cash the shareholder friendly way and bias the trial mine to more tonnage from higher grade zones.
Nothing wrong with that as long as they still get enough info on the overall deposit.

If limited to say 5ms deep, strip ratios will be very low (near zero at GH) so mining costs and operating costs are going to be very low at those grades even for a small operation.
Costs should mostly be limited to hiring a gravity plant and transporting it (pure guess around $2mill?).
We could end up with $4-$5mill net cash or more depending on grade.
There will be no corporate tax and from what I have read on NT royalties, there should be more than enough offsets to minimise royalties as well possibly to zero although I am no accountant so not sure about the royalty.

The most important thing with the trial mine though is not the cash it seems likely that it will generate but rather what will be learned.
It may boost confidence in the grades enough that the jorc resource grade is lifted with obvious implications to mining cash flow and valuation.
Even if it only reinforces existing grades, the increase in confidence of the resource should be sp positive.