Balance Sheet , Sustaining Capital OutlookIncluding the funds to be received from the current gold concentrate sale plus the recent Firefly PP, we should have cash of $6-$7 million in the bank.
To that we can add $6.2 million from the exercise of those 7 cent warrants .
This gives us plenty of sustaining capital to fund all of our expanded operations this year including the planned drilling programs and normal operating exoenditures.
Additional New production of gold from old stockpiles, tailings , wash plant etc should amount to over 10,000 ounces of gold concentrate bringing in about $25 million in gross sales.
These funds can be used to fund pre development work at HD.
For example, 5000 m of closely spaced grade control drilling should cost about $1,75 million @$375 per meter.
I recall about 9000 meters of drilling of Deer Cove, Stoger and the two satellite deposits of HD which should cost about $3.5 million .
Next subsequent to grade control , HD can then be stripped of over burden , essentially fully preparing
HD for resumption of mine production .
Installing the crusher and XRay ore sorter and a few other facilities such as explosives storage and we are ready to go.
The capital raise beginning in May will be to fund those items .
There are also other interim sources of revenue being considered for pre production operations .
I don't know the details but Pit 278 of Stoger might come into play....just a guess mind you.
In summary we are in great financial shape , fully funding our non capital operational costs while prepping HD for Production .
AIMHO
GLTA