And I would again add the fact, that has been repeated, ad infinitum,.......MUS has been exploring and bulk sampling, with auger drilling, and artisanal additions.......MUS has not started mining yet.
Once the exploration phase is complete, and the prime secondary ruby traps are located, and JORC delivered, I would venture that we may see an exponential rise in the recovery rate.
Hence the plant processing capability upgrades,....forward planning.
''In June 2014, GEM bagged its first sales – grabbing US$33.5 million on the back of $33 million of investment to that point.
The next year it came up with a JORC resource at 62.3 carats per tonne, outlining a project with an internal rate of return of 312% & post tax NPV of approx. US$1billion.
In December last year GEM sold another package of rubies, netting US$28.8 million for 90,642 carats bringing total proceeds to US$150.8million.
Remember, it invested US$55 million into exploration and production to that point, and raised US$61.8 million – meaning it’s not actually in production yet and it’s paid back its investment.
It’s now currently on the path to full-scale production – offering an insight into what MUS may go through.
The circumstances are different, and we’re pretty sure MUS won’t be spending US$55 million in the near term, but the trajectory is there to see.''
Courtesy of next small cap 23/05/2016
So, in December 2015 GEM sold 90,642 carats NETTING.........US$28.8 million = AUD$38.77 million.
I ponder what the mix was in that auction, given that we seem to have a higher proportion of secondary rubies,...........the more valuable ones.
Remember that MUS will set a reserve price on every ''parcel'' of our rubies.
Courtesy of our employed French ruby grader, so it is not a reserve free auction.
I rest my case,............but I fear that,...
You can lead a horse to water, but you cannot make him drink.
You can lead a man to knowledge, but you cannot make him think.
MUS Price at posting:
4.3¢ Sentiment: Buy Disclosure: Held
