RE: RE: News..1.8 m oz MC capable of 70,000 oz perOn a roll is right!
The high grade sulphide ore can be cheaply accessed thru the sulphide pit and the recovered ore concentrated at the site and shipped by road to the Union Reefs mill which will be modified to take this extra ore.
This means very modest capex to develop the mine and probably cash costs at or below the peer average.
The first three years will be at 70,000 oz and will target the shallower high grades which means very low cash costs and a quick payback.
Lets say $500 per oz cash costs @ 1600 POG or a cash flow margin of $1100 per oz X 70,000 oz = about $80 million per year in annual cash flows X 3 years equals $240 million in initial cash flows which should pay off the capex in one year or so.
Drilling to expand the resource was conducted in 2011 and those results should be forthcoming soon............more gfood news.