RE:RE:RE:TonnageWWH,
There is no doubt that positive cash flow is an excellent feature in ICG development plan. Management seems a bit coy about its game plan. But we all know that the plan is solid on many key fronts.
- it has a mill, ready to go;
- it has enough tonnage from several sources of ores with various near surface high grades;
- permitting in place, e.g. Parallel UG mining can begin anytime (21 October 2015 NR). The grade for this zone is phenomenal. Let start with that to get the mill going. Pretty soon Sigma Reconstruction work will be complete (end of August 2016) to identify potential stopes for scooping up high grade ore...presumably the mining permits for Sigma is still valid, so ore extraction can be done anytime.
- Flexible plan: ICG has the flexibility to pick an choose which deposit to begin, but due to permitting requirement and grades, they could be logically start with Parallel, Sigma, Triangle and #4 Plug, in that order.
Yes, the cash flow would be significant, say profit of the order C$700/oz should be possible. This would translate to a profit: 2400 tpd x 10 gpt (conservative for Parallel) x 300 days/yr /31 g/oz x C$700 = C$162 M/yr (math OK?).
Even at a lower grade of 6 gpt the profit is approximately 162 x 6/10 = C$100 M/yr. It's a cash cow. I am sure that de Jong knows.
GH