Voltalia Ord Shs VLTAF

Other things to compare

[eebler]

Was looking to see if I could find other things to compare and decided to look at a bunch of the other projects/mines in/around Burkina Faso.  Some things interesting, and some that maybe not so, but figured I would throw them in anyway.

Bombore
- <1 g/t
- more importantly, they are in very close proximity geologically so if you look at their heap leach tests they are showing recovery of > 80% so that bodes well for any effort by VTR to capitalize on the low grade shell
- just grabbing a number out of the air for argument sake, but if you take 25 million tons at an average of 0.2 g/t low-grade dropped on a heap leach pad, and an 80% recovery rate, I think (correct the math if I have done this wrong) you end up with 150K ozs, which at a conservative net of 400/oz due to potentially higher costs is still good for 60M pre-tax

Samira Hill
- reserves and resources estimated at 1.3 g/t and total of 1.8M ozs in these categories (another 600K in inferred at 1 g/t)
- different country, but on the same trend as Kiaka and size-wise might be same as what the initial 43-101 produces
- interesting more for the fact that Semafo is on a tear recently (7.55/share) and other than technical momentum, analysts are wondering why and where the growth is supposed to come from when their total reserves and resources is 5M  
- fair value estimated to be 7.00 based on NAV
- geology is going to be comparable given it is on the same trend, and their recovery results are showing 93-94%
- cash-costs of 650/oz (ouch) but shows a worst-case scenario off 1.3 g/t (remember that Red Back can do it for 350/oz)

Mana
- another Semafo mine, but this one in Burkina Faso, to west of Kiaka so on a different gold trend
- 2.3M ozs at 2.4 g/t in all reserves and resources
- one long open pit at 2.3 kms and another of about 1 km - can't tell width
- average cash costs of 360/oz so gives a comparable for a long pit that is more in line with others (makes you wonder what is happening at Samira Hill)

If VTR can prove up 3M ozs just in the Central section and eventually create a plant capable of producing 200K ozs per year, that is a 15 year mine-life.  Going back and looking at Samira Hill, their comment is that since mine opening back in 2004 it has maintained a continuous mine-life of 9 years.  Granted, they produce less than 100k per year, but they are smaller than what Kiaka appears so they may have sized it to allow exploration to keep up with potential discoveries to feed it.  With all the other potential in/around the Central zone, lots of potential for long LOM

eebler