RE:Adumbi PEA of $895 m US = $1.2 Billion in CADMy estimate was just over $1 billion but that included 313,000 ounces of Manzaka and Kitenze.
Excluding those and my estimate would have been very close.
So, roughly $950 million cad net to Loncor which is about $7 per share or about 10 times current market cap.
With the underground already showing potential to double Resiurces of the pit along with fully developing Manzako and Kitinze, I see 10 m ounces for this conglomerate mine.
They cannot expeditiously explore and develop all of the assets of this huge area, so they should look to spin out one or more to shareholders ....Makapela for example
Project Opportunities
Loncor has identified and will be pursuing a number of opportunities for enhancing and increasing the economics and financial returns relating to the Adumbi project. These include the following:
Increasing Mineral Resources
There is excellent exploration potential to increase mineral resources at Adumbi, within the Imbo Project and other permit areas held by Loncor in the Ngayu greenstone belt.
At Adumbi, the mineralized BIF host sequence increases in thickness below the open pit shell and wide spaced drilling has already intersected grades and thicknesses amenable to underground mining.
Further drilling is required to initially outline a significant underground mineral resource which can then be combined with the open pit mineral resource so that studies can be undertaken for a combined open pit and underground mining scenario at Adumbi.
Besides increasing the resource base, a combined open pit/underground project could increase grade throughput and reduce strip ratios with the higher grade, deeper mineral resources being mined by underground which could increase annual gold production and reduce operating costs.
Additional deposits and prospects occur close by to Adumbi and have the potential to add mineral resources and feed to the Adumbi mine operation.
Along trend from Adumbi, the Manzako and Kitenge deposits have Inferred Mineral Resources of 313,000 ounces of gold (1.68 million tonnes grading 5.80 g/t Au) and remain open along strike and at depth.
Mmy is Further along strike within the Imbo Project, four priority prospects have been identified with similar host lithologies to Adumbi and will require drilling.
Additional feed for the Adumbi processing plant could also come from Loncor's 100%-owned high grade Makapela deposit where Indicated Mineral Resources of 2.20 million tonnes grading 8.66 g/t Au (614,200 ounces of gold) and Inferred Mineral Resources of 3.22 million tonnes grading 5.30 g/t Au (549,600 ounces of gold) have been outlined to date with the high grade material being able to be transported to Adumbi.
Additional geotechnical investigations including drilling has the potential to optimize and steepen pit slopes especially for the competent fresh BIF host rock and thus reducing the strip ratio and thereby lowering mining costs.
Further metallurgical testwork to confirm recoveries, reagent consumptions and optimize flowsheet design should be undertaken as the project advances into pre-feasibility and full feasibility stages.
As mentioned previously, hydroelectric sites have already been identified close to Adumbi and further studies are required to optimize the power set for the operation.
Qualified Persons
Mr. Philemon Bundo, Senior Vice President of Process at New SENET (Pty) Ltd, and Mr. Daniel Bansah, Chairman and Managing Director of Minecon, are the "qualified persons" (as such term is defined in National Instrument 43-101) who are responsible for the technical information disclosed in this press release. Mr. Bansah and Mr. Bundo have reviewed and approved the contents of this press release.
A technical reporI