RE:initiated a positionThank you.
In a previous post, I pointed out that MAE will resume production from its Pine Cove mill as soon as the current optimization recovery tests are completed.
Currently, they have 4000 ounces in stockpiles to begin with which should take them up to 4 months to process .
These are currently stored at the Pine Cive mill site.
Costs will be cheap as no mining or signifucant transportation costs are involved.
4000 ounces X $3500 CAD= $14 million gross and about $7 million in free cash flow.
Other adjacent gold resources such as additional TSF #2 gold tailings ...whatever can be scrounged ..
could add to that .
Plus they have about $8 million in 6.6 cent warrants and some 5 cent warrants which they will entice to exercise .
Then, they will soft mine...another term for Bootstrap mining..test mining to add to FS outcomes of the HD mine plus probably Stoger part of which is already permitted needing only $500,000 of additional definition drilling.
This is considered to start around mid August 2025.
Normally, test mining is done for between 5-10 % of expected production outcomes...Richmont used 6 %.
As I recall my calculations in that recent post, I estimated about 10,000 ounces in the second half of 2025.
10.000 ounces times $3500 ounces = $35 million cad and about $17 million in free cash flows.
Add the $8 million from warrants , and its quite possible that Maritime will require only modest $15 million or $20 Million in capex to raise to full file all mine reopening costs...I believe the Boostrap are capitalized.
The current $8 million rights fund raise will cover all costs to exit 2025.
So, the interim production free cash flow ..late 2024,..25...will be exclusively for HD + satellite+ Stoger FS capex needs.
We are very well situated , with exclusuve 100 owned , debt free,mmilling assets that are the only source of excess milling capacity in NL.
You will do well..
GLTA