It's been pretty quiet on the AGS threads so I thought I might make a quick post to pass some time.
With the price of gold pumping in recent weeks, I ran a quick sensitivity analysis to see how much of an impact gold price has on the cash flow model of the Weednanna gold project using the updated scoping study assumptions quoted in the Technical Valuation Report (written by Mining One Consultants, 10th September 2019).
For those interested, below is the original cash flow summary from the report:
The table below is an estimate of the NPV of the Weednanna gold project using a gold price of $AU 2,700/oz (equivalent to current spot prices)
The table below summarises the change in NPV of the project as a function of gold price.
Given the recent effort by the company to increase the confidence of the resource model with further infill drilling, I will be curious to see how the above numbers compare to the economics in the Feasibility study, given we know that only 25% of the inferred resource that was contained within the shells of the open pit model was used in the production profile in the scoping study.
Anyway, hopefully this post highlights the potential of this project for those who are bullish on gold prices in the medium to long term.
