GENERAL POST - Should SPA release a pfs ?
Or...what if another was interested in SPA ?
The pfs can work 2 different way...
If it's lots of gold and the junior mines the deposit themselves it could exponentially rise the stock very nicely - that is...if the deposit is carved out with a sizable gold silver resource
and not just 30% - wink. And, on the flip side -no pfs works to an advantage forthe purchaser.
No data - one can throw a number at the junior.
Suppose another was interested -
As mentioned above - a smaller size resource would work to the purchasers advantage,
purchaser only pays for the factored gold + silver in the report with a " maybe " dollar figure on the in situ gold + silver not factored in and if it is factored = $50 - $100 oz +/- ..
Spanish Mountain has seen over 170,000 meters in drilling.
That's alot of holes.
Which provides lots of , insight.
Has a potential interest sifted al lthe data over the years ?
Why exactly has spa drilled more holes and thee new drill holes are not included in the pfs ?
First thing that comes ot mind is... another wants that extra assurdity of measured resource.
The current pfs is aiming for 1.2 million ounces of gold.
If another was interested - mostly likely a price would be facotred on this oz value.
Then there's the ....
- 2.9 million ( other ounces ) keep in mind the pfs is aiming for only 1.2/million ounces
- silver credits
- potential carbon credit ( if applicable )
- waste ore ( lots ) after core is mined - out of ground ( contingency ) upto .40/g per tonne.
If it werre me... lol
And if i were a brand name who also mines gold and who rhymes with - Eskimo,
I'd have swooned in long ago... like last summer.
Question points to - could they have collected any shares since thier takeover of another mine
nearby ( northerly ) whose name is of the sound in which a dog makes ?
Who knows...
So... let's suppose this " other nearby " who just so happens to be upsizing a concentration plant - is interested and did like the NEW pfs and the 1.2 - million oz would the waste ore not
act as a contingency buffer - knowing that the ores have bene mined out of ground with a potential ( upto ) .40/g per tonne ?
If the waste ore is eq of about 2.5x the size of the 39/million tonnes of gold ore then...
An approx 100/million tonnes would sit out of ground - with a potential - .40/g tonnes.
Out of ground could act as an entirely different economics beingthat the majority of costs have bene absorbed and only porcessing is needed - with a potential asilver/carbon credit if applicable.
This, northerly name brand that rrhymes with - Eskimo - has a stock that is - rising in valuation.
Stock is approaching $8.00/share and was once close to $19.50/share aug 2020.
Why i bet... they'd love to have thier stock back up in that high range.
Question becomes - would an aggressive move in the form of, absorbing SPA into thier fold
with a 1;1 share absorb work ?
They're sitting with an approx 130/million shares out.
Which now begs what would 1.2/millon oz fetch if spa ever reworked thier numbers and
chopped some silly expendsitures off, such as,
35-50/million - contingency
17 million - off site costs
28.5 million - onsite infastructure
84 million - project indirects
40 million ? - processing plant - if the potential purchaser already has a processing plant ( ha )
Yeah... lots of shaving could be done to loer the capex - improver economics...
But... if there were anyone ever interested why i bet they'd have already performed thier own figures of what the project has in ounces and what they could profit.
So.. essentially.... is the pfs really needed...wink.
Only eally good for - tabulating a portion - of the gold + silver... especially if its carved out
with only 30% its potential resource.
If another was interested.. i would say its all about what they could mine it for per oz.
Especially if they've the equipment to do so.
Which brings up the subject - gold prices and future projections.
What gold price is appropriate to match with the project oz's ?
Run the numbers in CDN or USD ?
I've always said... if it's mined in Canada and expenditures are in Canadian dollars, and profits are paid out in Canadian dollars then why not, modle a project in Canadian dollars.
A $1250/oz average over life of mine equates to - $1,562.00/oz
Looks a helluva lot better than using usd denominations.
Sauppose the other interest has equipt already...
And suppose they could mine it for - $750/all in.
= $812.00/oz profit. ( net )
x 1,200,000 oz
= $974,400,000.000 - gold profit. ( generous - given that gold is priced far higher )
No silver credits factored
No carbon - if applicable
And... a healthy stock pile of waste ores that could contain upto .40/g of gold per tonne.
39,000,000 tonnes x 2.5
= 97,500,000 tonnes of waste
x .20 gold ( recoversable ) grams per tonne
---------------
19,500,000 grams
~ 31.1
---------------
627,009/ oz ( gold potential in waste stock pile )
x $812
-----------
$509,000,000/million ( net )
+ $974,400,000.00/million ( net ) main ore body ( pfs )
---------------------------------------------------
$1,483,400,000.00 - value
not including - 2.9 million ounces in situ +/-
not including silver credits
potential carbon
1,483,400,000 ( billion )
~ 400 million shares out ( spa )
= $3.70 / share
Now.. the big question weaps around ....
What if SPA beefedup their pfs - aimed for 2.5/million oz 1 million silver
and potential carbon credit -
= would the stock achieve a $3.70 value with 400/million sharesout ?
I'd say... it would be its limit there about....give or take - dependent on gold prices.
Which brings into play.... is it better to mine... or sell it ?
if the other mystery miner ever did make a move - not saying they would - but if they did...
and only used their shares to - purchase with a - 1;1
1,483,400,000
~ $8 / share ( purchasers value of share )
= 185/million shares needed
+ 130 /million present shares out
-----------------------------------------------
= 315 - million shares
$10/share - hypothetical - potential interest share price rises.
= 148 + 130
= 278 / million shares out - this would favor thier share count using the $10/sh value
heck.. they were almost $20/ less than a year ago.
Just throwing numbers around....
Not investment advice... just seeing which path is better for spa...
Cheers...
Well... i've managed to play catch up on spa to the best of my ability.
Some of my posts maybe right while other things maybe out in left field.
Thanks for bearing my research on carbon anda few other posts.
It's sit back and see how this plays out.
Again.. my posts are not investment advice.
Markets can spin on a dime...
Its a guessing game.
Cheers...