where on the mining timeline do we sit?, page-18

FMX, I agree that Buccaneer is likely to show a decent NPV at around current gold prices.
I was just pointing out that even if it does not quite look attractive enough to justify an immediate move towards development, that IMO it is only a matter of time before it will be;
Either through optimising higher grade zones or,
Through higher gold prices, which in any case, I expect we will see before Buccaneer could start production even if it was fast tracked.
Hopefully it shows a much higher NPV than OP's initial study.
Yes it’s lower grade but for now it has many more ounces.
I am not disagreeing with you in wanting to see the results.
I was posting my eagerness to see results from Buccaneer and my thoughts on what it might be worth a few months ago.

One thing I am very confident of;
We will soon see a good upgrade to the OP jorc, both in the inferred and indicated categories, and then a significant increase to the forecast cash flows in the upgraded scoping study.
We should see both of those this quarter plus hopefully the Buccaneer study outcome this quarter also.
That would be a nice lead up to trial mining which will hopefully see permitting also during this quarter for a start up soon after the wet.
By then of course we will be also preparing for the next exploration season which promises to be interesting with GH exploration only just in its early stages and Western limb showing excellent widths at depth and open at depth and strike.
We also have the potential to find much more to the north below cover and I think it might be years before we uncover the full potential there.
We had a high grade drill result around 1km to the north of OP from a vein below cover so there is good potential that the veins continue between the current OP jorc to GH area, to at least 1km further north. That could roughly double the current surface foot print and who knows how much further north it might run beyond the 1km.
There could very easily be more GH or western limb style veins in that northern area below cover.
The potential for the upgraded study when it includes GH to just 50ms and western limb extensions to 50ms IMO is $300-350mill.
Also IMO you could easily double this number when including underground mining to 250ms (current scoping study only to 100ms max pit depth).
That would get us to at least $600-700mill. That is just mainly on potential from currently known veins.
Trial mining is needed to confirm grades/continuity but there is also good potential for trial mining to prove up grades higher than those currently estimated.
Remember the grades that resulted from the recent gravity test studies and the panned grades from an RC hole that showed grades much higher than what the lab reported for that interval of the hole. Sure its no proof that grades will reconcile higher, but it is at the very least reassuring evidence that we may be positively surprised.
Now think of the potential upside if we double the footprint over the next two years (potential for $1.2-$1.4bill, and I stress potential only for now) and then what if the veins continue well below the current known depths of 250ms?
E.g. 500ms, 750ms? I am not suggesting we will see all this potential filled but it’s good to know there is plenty of potential to grow the resource, mine life and annual production rates significantly.
Plenty to look forward to even before considering the potential of the bulk of our ground outside the OP area.
Very good reason to continue to focus most of our efforts on OP for some time.
When you are sitting on one of the best grade open pit (and u/g) discoveries which is open along strike and at depth, why wouldn’t you focus most of your efforts on it?
I agree FMX, continue to spend some money elsewhere, and then accelerate those other efforts after the bank balance begins to grow.
With a mc around $150mill and a projected cash flow of $257mill on the initial study for OP, there is plenty of risk factored in and nothing much for any of the very large upside potential.