Break-even time for the HGO mill & Resource estimate size...@love4gold you wrote: how long it would take to recover $50M out of $15 per ton savings? From RNC MINERALS CRUX Investor interview with Mark Selby May 15th 2019 as per https://ceo.ca/rnx?677a469c56eb: Matthew Gordon: Tell me about the numbers, it's 50 million bucks AUD. You've obviously done the math, worked out that that's good value you saving $15 USD which is great. Can you tell us a bit more around the thinking of the way that you structured it, in terms of the cash and the shares obviously with the problem share price, less it is now, it's a little bit lower than it was just after Christmas. Do you look at it that the case of money's the cheapest when you can get it? I mean do the deal now. Could you have waited? Mark Selby: No, but I think if we had waited to do the equity component when we announced it because again, we wanted to take away any sort of equity overhang that's there. I think when we announced that hopefully we're in a place where it is completely non diluted financing that I think that will really help the story going forward. In terms of doing the deal when we did it obviously, you'd always know there's the best time to do it and then there's the time when the assets available. So, the asset was available. It was the right time to do it and we chose a structure that we think made the most sense for both investors and we're glad to have Westgold as a large RNC shareholder here going forward and Peter Cook quite likes the Beta Hunt Mine. Matthew Gordon: So how quickly does something like that pay for itself, like 50 million AUD is a lot of money right, so? Mark Selby: Yeah, if you just look at the milling synergies alone, if you just assume Beta Hunt is going to produce 2,000 tons a day, just the milling cost savings versus tolling you're looking at 10 million $ a year. So, if we do nothing else other than get milling cost synergies that's paid for itself in just over five years and again, at a higher mill rate. That cycle comes in much, much shorter. But, then on top of it we have all of that resource that's there. We will have ounces coming from that land package and then, being positioned in that part of the camp opens up a bunch of other future opportunities going forward. From follow-up RNC MINERALS CRUX Investor interview May 23rd 2019 as per https://ceo.ca/@pierreg01599501?9d858c6be8f9 : Matthew Gordon: Yeah. Okay, I understand. Well what if we talk of the mill, because it's a big component of reducing the AISC, when we talked last week. Big question people want to ask is, 'So how do you justify spending 50 M $ AUD on an asset like that?' What was the thinking? Mark Selby: So, for that 50 M $ AUD, we picked up more than a 1.5 M oz Resource, 400,000 oz Reserve. Just the near-term mine that's already proven out and that's part of the mine plan, that'll generate 10 M $ or 15 M $ of cash flow from us. So, you take that off the purchase price and then, you're looking at basically 35 M $-40 M $ . Matthew Gordon: Is that a net number? When you say 10 M $, 15 M $? Mark Selby: That assumes that we find no other ounces from the mines that we're looking at. Matthew Gordon: The question I was asking, that's a net amount for processing ore? Mark Selby: Yeah, just ore from the Resource that we're buying. So, in terms of benefit to Beta Hunt. We're picking up a mill for 35 M $-40 M $, that 12 years ago was built for 80 M $ and would cost you, probably 100 M $-120 M $, to replace today. So, when you get capital for cents on the dollar that helps add value long-term. You wrote: what are they gonna mill if the resource estimate is not that great. Resource estimate insignificant in terms of size and profitability? This is unlikely as per the following: From Graeme Sloan from RNC Minerals - Beta Hunt Overview, Published May 16th 2019 as per https://ceo.ca/rnx?f93d780b9dc4 : Graeme Sloan: Look I think what we're saying it's always difficult. I just look and base it on the facts. What's in front and today what we're seeing is a lot of consistent higher-grade results have come from the drilling of Western Flanks versus the A Zone heads the Fathers Day lode. So, I think Western Flanks could be the bread and butter and that, longer term just turn it over, make it happen, turn it out, type operation wider and more consistent whereas A Zone it's the cream if you get a Father's Day lode or something similar to it and they're the ones that adds on top and so it's that sort of ability to be able to have that as I keep saying, this optionality I think is great. I think there's some areas there that we still haven't touched yet and I think they could provide a whole different perspective of Beta Hunt and a little bit early to talk about those but at some point, in time, they'll be investigated and who knows what they could deliver. So, some of these what theyre mining above us in the open pit, Goldfields are mining is a different style of mineralization to what we're mining here to the gold. So, if there's an extension of that who knows what we could unearth down there. There's a lot of potential upside for us. There's a lot of hard work and there's a lot of getting your foundations right, you've got to get your foundations right in all of these operations, otherwise it doesn't matter what happens at the top, it'll crumble like a building. So, get those right, get your mining practice, get your geology, get your costs, treat it as a business and make sure you make money and for everything including especially the shareholders. That's what it's about. So, get all those right and then start to look at these others so we're in that process and the drilling that well be doing. What will grow a great deal towards making sure that happens sooner rather than later. Mark Selby, President and CEO of RNC, commented as per https://ceo.ca/@newswire/rnc-reports-multiple-new-high-grade-gold-intersections : "With the majority of resource drilling now largely complete, RNC enters the most exciting phase of the exploration program. Through the balance of the quarter, RNC plans to test the broader exploration potential of the four shears on the property at depth and along the 4+km of strike of the Beta Hunt system. RNC's drill program thus far has delivered on multiple objectives. Western Flanks gold mineralization has been extended with infill drilling and resource extension drilling. Numerous wide intersections now highlight the large scale bulk potential of this shear while containing significant 4 to 6 g/t intervals both in excess of the grade and width of the current resource. Drilling in the A Zone also continues to extend the resource, with multiple intersections both exceeding the grade and thickness of the current resource." From @Geodan April 18th 2019 as per https://ceo.ca/@geodan?83985740e4a1: Did get some info on questions from company. About what guessed. They think 3 grams or more a ton at widths they are seeing would be quite positive cash flowing to bulk mine, especially with mill if they get it. That matches what see in past. And the drilling they have released is better than what they got in 2017 width and grade wise. What they have been seeing width and grade wise is better than what they expected at both shear zones they have have been drilling. They have not explored much below the sediment layer. I am encouraging them to drill downward in the shears, not from the side, just to gauge how shears grade with depth below sediment layer and maybe hit another sediment layer. The next drill report will give us more data below, but really want to know what is 200, 300 meters down in the shears. Could be a big deal. Now 8% up on RNKLF Some more clarification on that, asked at 8 meters width, so at 8 meters they think 3 grams will cashflow well with the mill. That is more like old widths. They have some 20 to 40 meters widths in new drilling at over 3 grams. That should then be very very profitable IMHO. From @Mikeymike426 as per https://ceo.ca/rnx?8c8ff65a298b : Barry4180 did a resource calc based on 6.7m to 7m widths,, while breaking up larger metres into 7 metre increments, only for the drilling assayed this year with 3.5 g/t average. 62k @ 3.5 g/t jan 2019, 49k @ 3.5 g/t may 2019 = 111 k + 452 M&I from the Jorc map in April 2019 presentation. Just that alone has us at 563 k. From @Lexcon as per https://ceo.ca/rnx?a77c9627d4c5 : Several people have taken the drill assays presented so far and the range of estimates is that we will probably see somewhere between 800k and 1.2 million oz resource defined for just the portions of the WF and A zone they have done the drilling on.