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Majestic Gold Corp. V.MJS

Alternate Symbol(s):  MJGCF

Majestic Gold Corp. is engaged in mineral resource exploration, development and extraction. It operates the Songjiagou open pit gold mine in the eastern Chinese province of Shandong. Songjiagou Gold Mine covers over 75.04 square kilometers in Muping, Yantai, Shandong Province, China. It has four separate tenements, including E36/918, E37/1334, E63/2110 (Kumarl) Tenement and E77/2817 (Moorine) Tenement. These tenements are located in Western Australia, an area with demonstrated potential for the discovery of lithium oxide mineralization. E36/918 tenement has been granted and consists of two blocks located 150 kilometers (km) North of Leonora, about 50 kms north of Leinster, along the east side of the Kathleen Valley. E37/1334 tenement has been granted and consists of six blocks located west of Leonora township, 200 kms North of Kalgoorlie and 700 kms northeast of Perth, in the Goldfields region. E77/2817 (Moorine) Tenement consists of eight blocks located 400 kms east of Perth.


TSXV:MJS - Post by User

Comment by nozzpackon Feb 14, 2023 11:48am
71 Views
Post# 35285334

RE:RE:First Two Mining Benches Completed

RE:RE:First Two Mining Benches Completed

The upshot of doubling the LOM from the current 8.5 years to 17,0 years by converting Inferred to mineable can be deduced from the original prelim assessment in 2016.

In that assessment ...which can be viewed in the current Corporate Presentation ..the NPV10 increased from $335 m US to $742 milion US.

The ratio is 2,25.

The current NPV 10 as estimated in June 2022 was $450 million US.

Doubling mine life to 17 years at the same rate of annual production would boost the NPV10 to about $1.15 billion US.

The reason is obvious .
initial Capex is the same so that number becomes a much smaller proportion of LOM cash flows .

Further, exploration upside is substantial as well.

So, the LOM could increase much more than doubling even from current defined resource levels 

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