Estimated Cash Flows From Early Mining of HD HD already has a FS ( late 2022 ) and is fully permitted.
This will be preceded by Stripping of the over burden and 50,000 meters of grade control.
The latter will cost $ 10 million and the former about $ $5 million.
This of course could be done progressively by boot strapping ( pay as you go ) as test mining ramps up.
Richmont conducted test mining of HD for 4 months in 2000 , yielding 8500 ounces over just 4 months from the initial starter pit.....about 6% of the LOM production.
Generally, test mining tends to vary from 5 to 10 % of expected total LOM production.
The 2022 FS estimated 250,000 ounces as the LOM expected production from HD at that time.
Using a test mining ratio of 7,5% of expected LOM production of 250,000 ounces computes to about 18,000 ounces in the second half of 2025.
Commissioning of the Pine Cove mill will be done as part of Stockpile mining in the first half of 2025.
According to the FS, mining rates would start at 15 kt/d and progressively ramp up to 43kt/d in 2036.
From such data, it can be estimated that 18,000 ounces would require mining about 130,000 tons in 2025.
As the original starter bench / pit exists , I assume that the HD open pit will concentrically expand from there by pit wall pushbacks.
It is normal to high grade early production, so greater than 18,000 ounces could be produced in H2 of 2025.
However, @18,000 ounces, gross revenues would be about $65 million at current POG more than half of which will be free after tax cash flows, based on AISC of $917 US per ounce.
To be ultra conservative, divide by 2 and you still arrive at over $15 million in free cash flows which along with about 4000 ounces from stockpiles should pay for the essential costs of early mining.....stripping of Overburden and grade control.
Other sources of cash ...about $7.5 million from warrant exercises, gold fines recovered from the wash plant and reclamation of TSF #1....could entirely eliminate further Capex needs to reopen HD mining.
AIMHO
GLTA