TXRogers wrote: Hi GN2014:
I shared this same information with NS, who asked a very similar question. For me the real answers behind Novo's business prospects really revolve around "glueing" together all the key components which they have been providing to investors.
We already know that the MOY mill processed 1.88 Mtonnes of ore per year at its peak. It’s rated as a 1.5 Mtonne per annum mill.
So, let’s just say that Novo will squeeze out efficiencies close to %100 for simple estimating (we already know they’ll get 95% or more on the CIL circuit), and operate the 1.8 Mtonnes of ore per annum as average estimate.
Well that means if the mill processes 1,800,000 tonnes of ore / annum, we arrive at the following.
- At 1 g/tonne gold head grade: 57,878 troy oz / per annum gold production
- At 2 g/tonne gold head grade: 115,756 troy oz / per annum gold production
- At 3 g/tonne gold head grade: 173,633 troy oz / per annum gold production
- At 4 g/tonne gold head grade: 231,511 troy oz / per annum gold production
- At 5 g/tonne gold head grade: 289,389 troy oz / per annum gold production
- At 6 g/tonne gold head grade: 345,048 troy oz / per annum gold production
- At 7 g/tonne gold head grade: 405,144 troy oz / per annum gold production
- At 8 g/tonne gold head grade: 463,022 troy oz / per annum gold production
- At 9 g/tonne gold head grade: 520,900 troy oz / per annum gold production
- At 10 g/tonne gold head grade: 578,778 troy oz / per annum gold production
- At 11 g/tonne gold head grade: 636,656 troy oz / per annum gold production
- At 12 g/tonne gold head grade: 694,533 troy oz / per annum gold production
- At 13 g/tonne gold head grade: 752,412 troy oz / per annum gold production
- At 14 g/tonne gold head grade: 810,289 troy oz / per annum gold production
- At 15 g/tonne gold head grade: 810,289 troy oz / per annum gold production
- At 16 g/tonne gold head grade: 868,167 troy oz / per annum gold production
- At 17 g/tonne gold head grade: 922,427 troy oz / per annum gold production
- At 18 g/tonne gold head grade: 977,688 troy oz / per annum gold production
- At 19 g/tonne gold head grade: 1,030,949 troy oz / per annum gold production
- At 20 g/tonne gold head grade: 1,085,209 troy oz / per annum gold production
The grade ranges highlighted above are where the Beaton’s Creek grades currently fall.
Now, read this post again:
https://stockhouse.com/companies/bullboard?symbol=v.nvo&postid=31390060 You can bet your bottom dollar that the modifications (ie, gravity circuit, water supply, etc.) are all designed to placing in the gold in the correct concentrate to maximize specific output and revenue for the mill.
I am also very curious on the how sorted ore concentrate will be mixed with lower grade ore so that the optimal gold reagent is maximized and is maintained continuously. Investors should consider this aspect very seriously. Because it is something that MOY could not facilitate and did not pursue.
I do not know the intimate details of the Novo mill modifications currently underway. But by every indication they are premeditated, well thought out, and targeting a much more comprehensive “Pilbara solution”.
This is all about the head grade and the ability of the Mill to process it.
And SORTING has a lot to do with it. Claims of 125 K oz/annum production, is a reasonable estimate of 2 to 3 grams / tonne head grade (Beaton’s Creek). But this may actually be conservative because we know that Novo has been spending the last couple of years (on sorting technologies), making sure those grades jump astronomically before they are pumped into the mill.
The type of surface (or near surface) horizontal gold distribution throughout the basin, the oxide and coarse gold nature of the ore, the rapidly developing ore sorting technologies, and the significant impact of head grades to the new mill are what sets this Novo story apart from the previous players.
This is what we all need to factor in.
Tx