How Many Years of Gold Production Will Orion AddHD had 427,000 ounces in its open pit gold resources in the 2020 PEA.
Orion had 538,000 ounces in its open pit and U/G Gold resources.
Both HD and Orion were drilled on over 6 occausions in the interim period to the timing of the 2022 FS.
By then, HD was estimated to contain 272,000 ounces of mineable Reserves which is a 63.5 % conversion rate of the 427,000 ounces in all resource categories in 2020 ( 272,000 / 427,000 ) .
As there were also signifucant Orion drilling at the same time , it's not unreasonable to expect that 63.5% of its extant gold resources in 2020 would be converted to mineable Reserves.
That number is 340,000 ounces of Mineable Reserves for Orion ( 538,000 times 63,5 % ) which at 65,000 ounces per year completes a 10 year mine life or a 12 year mine life at 50,000 ounces per year.
Stoger Reserves will add to that number.
Combined projected revenues would be close to $2.5 Billion CAD @ 2500 US POG.
It need not be said but I will say it, doubling the mine life will approximately double the NAV.
That is, the Updated HD plus Orion plus Stoger Reserves will likely result in an after tax NPV5 NAV in excess of $650 million CAD at $2500 US POG.
Typicallly, Gold producers trade at 70-75% of NAV.
The above calculations imply a fair value on mineable Reserves of about $0.45 per FD shares.
It need not also be said that the robust cash flows from the 5 year HD mine will fund a massive exploration and development program of not only HD, Orion and theur sattelite recent discoveries but also all of the Point Rousse discoveries , the Black Ridge Copper discoveries plus the massive polymetalic discoveries of Whistler Valley.
This is how small well stocked gold producers bulk up during mining of its gold resources, enabling them to add increasing bulk by acquiring other deposits enroute.
AIMHO
GLTA