The Coming PEA and the Advantages of grade Let's take our Orogenic sibling deposit composed mostly of small stockworks veins and just 150 km away on this Great Rock Within The Sea.
The 2022 FS had 2P of 2.7 million ounces at 1.62 grams per ton which will generate 195,000 ounces per year of open pit gold at depths less than 300 m for 14 years at AISC of $1007 US per ounce.
The low grade required a mill capable of 9000 tons per day and a mining crew and camp of over 450.
Keats + has an average grade of 11 grams per ton at average depths less than 300 m and eminently open pittable .
For starters, Calibre will have to mine and mill more than 20 tons of VL ore to recover 1 ounce of gold.
At 11 grams per ton, NFG will only have to mine and mill 3 tons of ore to recover 1 ounce of gold.
Does Keats+ contain 2.7 million ounces of gold at 11 gms per ton ?
You can bet your sweet Bippy on that ....multiple coarse proxy estimates by myself by several methods show perhaps 10 million ounces or more are contained at depths less than 300 m.
But, let's say just 2.7 million ounces at 11 grams producing 195,000 ounces per year for 14 years...identical to V Lake .
V Lake capex to develop is now over $1 billion cad and still counting ...which will substantively adversely effect its NPV
NFG had the exclusive right to mill its ore at the 1400 tpd Pine Cove Mill fully equipped with permitted ( 14 years ) tailings and polishing ponds, and ample ore storage facilities .
That mill , now fully inspected and upgraded, is fully capable of producing 195,000 ounces of NFG ore for 14 years .
Mining costs will be modest, having to mine just 3 tons to generate 1 ounce of gold.....mining costs per ton is the same regardless of grade
Processing costs will be predominantly tolling fees and transportation costs of separated ore from Queenie to Kings Cove .....about 15% of processed value by my estimates.
Virtually zero mine develooment capex to mine Keats+ as the required equipment is already on site .
So, compared to Valentine Lake AISC of $1007 US per ton, utilizing the Tolling option for Keats+ open pit ore , the AISC for QWN open pits will be substantially less.
With no debt and no mill capex costs, a rough modification of V Lake AISC suggests less than $500 US per ounce .
At $2200 US POG, NFG will be generating over $300 million US in free cash flows per year for 14 years, assuming that Keats+ open pits contains just 2.7 million ounces .
Is it any wonder why NFG is not for sale and why PALI insiders are filling their boots knowing full well the massive appreciation of their 45 million NFG shares caused by trial mining of Keats et al.
AIMHO