Small open pit economicsMarket cap is 190 million for likely 3-5 million ounces close to surface high grade with good metallurgy.
A 1000 tonne per day mill could be set up for 50 million or less which would mean 25% dilution. 1000 tonnes at 3gpt in the starter pit would produce 3kilograms of gold per day or about 100 ounces of gold per day. That is 36,500 ounces per year. That is worth about 55 million Canadian. The cost to produce each ounce could be comparible to other small mines so 35 dollars a tonne or 35,000 dollars or 13 million a year. So 50 million in gets back 42 million a year.
Tweak those numbers a bit to 5 gpt and payback could be in 9 months. 36,000 ounces a year at 3 million ounces would take 100 years to mine. If we took half a years profits and upped to 3000 tonnes per day we would be talking 30 year mine life with 120 million a year profits. At 10 times earnings thats a market cab north of a billion or 5 dollars a share.
Of course what else will we find in our small little over explored area???
Just saying.