TSX:LSG.DB - Post by User
Post by
shawkon Jun 08, 2015 4:02pm
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Post# 23808379
RBC Upgrade (excerpt)
RBC Upgrade (excerpt) With potential to repay the Convertible Debenture with cash. At $1,200 gold, USD/CAD exchange rate of 0.80, and sustaining/expansion capital of $60MM and $56MM in 2015 and 2016, we estimate free cash flow of $32MM and $33MM, respectively. We forecast sufficient cash by mid-2017 to allow the company to repay the convertible debenture without issues shares (Exhibit 4). 144 Gap Zone has potential to extend the Timmins West mine life. While we need to see the results from the Q3/15 underground fill-in drill program (needed to confirm the geometry, continuity and grade of the 144 Gap mineralization) we see the potential for a 500k to 750k oz gold resource. We expect diluted gold grades in the 5.0 to 5.5/Au range similar to the Thunder Creek deposit at the Timmins West mine. We believe the 144 Zone resources have the potential to extend the reserve life from 3.5 years to 7 or 8 years. P