Questions & Next StepsQ. Letter to Artemis. Is it better to mine now than drill, drill, drill to prove up the resource?
A. This can grow into a 100 million annual operation quickly. Get $ from Sheikh daddy, for first inline order of a few of Steinert machines. Tell the board and DL not to worry about the cost you can always sell them for profit to the nearology folks. Let Novo prove up Purdy's while ARV, Zero's in on Munni Munni and its mega Km's of open outcropping conglomerate beds. Forget the start drilling option, start trenching to prove up the (mine now) daylighting portions as we know Au is already there. Send in the equipment and the dynamite team NOW. Steinert and concentrate the Gold. Ship said concentrate off to any cost effective toll mill operation ( Macarthur MMS) to generate some Friday gambling money. Then truckload tons of secondary pay to Radio Hill. Stock pile 50 to a 100K tons onsite for pre-run commissioning of the Mill. Bingo, full operations and "chu, ching" cash flow begins in 9 months. Start making 387 large* a day on 10g/t when in full production. The payback on invested capital is measured in days! All with no Dilution...
* based
750 tpd x 5 g/t / 31 x 1600 pog = $ 193,548/day,
750 tpd x 7.5 g/t / 31 x 1600 pog = $ 290,322
750 tpd x 10 g/t / 31 x 1600 pog = $ 387,096, per Q 35.6 million, 142,451,328 annual revenue.
750 tpd x 12.5 g/t / 31 x 1600 pog = 484,438
750 tpd x 15 g/t / 31 x 1600 pog = 580,645
750 tpd x 17.5 g/t / 31 x 1600 pog = 677,419