factRbest - MY LIES addressed below Let me address factRbest calling me a liar and let the thread judge for itself who the informed are on this thread.
You asked for facts and links so I will provide you with some FACTS and LINKS with regards to the Wasamac project:
Sedar link to the PEA on the Wasamac project:
https://sedar.com/GetFile.do?lang=EN&docClass=24&issuerNo=00001799&issuerType=03&projectNo=01906065&docId=3116675 The PEA conclusion that the project was not economic at $1,300 US gold price but interesting based on sensitivity analysis carried out at $1,600 US gold price (excerpt from PEA – NOT MY LIES)
CONCLUSIONS
The Project base case scenario consists of technical and cost assumptions outlined in this report.
The PEA indicates negative results with pre-tax IRR and NPV(8%) of 7% and negative C$32 million respectively, at a long-term gold price of US$1,300/oz Au. For comparison, at current gold price of US$1,600/oz Au, the pre-tax IRR and NPV(8%) would be 14% and C$197 million respectively.
Richmont Mines Inc.–Wasamac Project, Project #1804
Technical Report NI 43-101 – May 11, 2012 Rev. 0 Page 1-7
The exchange rate used in the PEA to arrive at that conclusion (excerpt from PEA – NOT MY LIES (bold added for emphasis))
ECONOMIC ANALYSIS
REVENUE
•
Exchange rate: US$1.00 = C$1.04 (36-month trailing average). • Gold market price: US$1,300 per ounce gold (36-month trailing average).
Richmont Mines Inc.–Wasamac Project, Project #1804
Technical Report NI 43-101 – May 11, 2012 Rev. 0 Page 1-2
MY ANALYSIS:
Using the exchange rate today, can you please tell me what the current US$ gold price converts to CDN$ equivalent. I CAN AND DID. It converts to the $1,600 US$ gold price used in the PEA sensitivity analysis. I will let you do the math.
Hope this opens your eyes and before accusing anyone of spreading LIES, I strongly suggest you DO YOUR HOMEWORK.
Instead of focusing on the “uneconomic nature of the deposit”, maybe you should focus of the capital cost required to put such a massive project into
future production and the gold price that would be required to attract that level of capital or entice a major to partner with MQR to advance a project of this size and metrics.
The $2,000 figure put forth by “our CEO” appears reasonable to me because the payback period of the initial capital cost set out in the PEA must be shortened.
For anyone who is interested, the operating metrics cited in the PEA were as follows:
The average Life of Mine cash cost is approximately US$688 per ounce of gold, including gold refining, transport, and insurance charges. When capital costs are added the total production cost (cash cost per ounce plus capital cost per ounce) is approximately US$1,061 per ounce of gold. Wasamac will produce approximately 140,000 oz Au per year at full capacity.
Richmont Mines Inc.–Wasamac Project, Project #1804
Technical Report NI 43-101 – May 11, 2012 Rev. 0 Page 1-3
On a separate note regarding your concern below:
“Understand - If the Beaufor mine runs out of ore (and there is not much) then they need to cover the liability or continue to run Camflo at a steep loss.”
I did my homework (I will not make it easy for you so NO LINKS) and discovered that the Beaufor mine has been operating over the last 10 years with no more than 3 years of future mineral reserves outlined at any point in time. As a matter of FACT, the mineral reserves reported by Richmont between 2007 and 2016 varied between a low of 31,133 ounces in 2013 and a high of 75,632 ounces in 2007.
So Beaufor running out of ore is a matter of opinion and I am of the opinion that this mine will continue to replenish reserves if money is invested in exploration and development by the current management. THIS IS HOWEVER MY OPINION. You are free to disagree with it but before dismissing it off hand please do some research on narrow vein mining in Quebec. Also, a good source may be to contact the actual CEO of MQR and ask the question.
Having doubts and concerns is normal but accusing someone of spreading LIES because you fail or refuse to do the research to either corroborate or dispell what is being said is ____________ (I’ll let you fill in the blank).
I have faith in the current management based on “our current CEO’s” history of advancing a project and selling it for a handsome return to the shareholders. Again, do some homework and you will see that this is not his first rodeo.
Good luck to all the MQR longs.