Wheels Group Inc GRFJF

Wgdf/wgi May Have A Bright Future And Higher

[loantech1]

Production Numbers. -------------------------------------------------------------------------------- Some rough numbers on WGDF/WGI. They are permitted to move 60,000,000 tons of dirt per year. They have an average strip ratio of 2.7:1. So you are left with about 22,222,222 tons of ore. WGI may have used a number of about 76% recovery for the gold and may have used about 35% for recovery of the non-0xide gold ore in their BFS. But But! Newmont's metalurgy tests showed recovery of over 80% including the non oxide.See WGDF's corporate presentation. https://www.westerngoldfields.com/i/p...esentation.pdf The average grade is .017 ounces per ton. So 22,222,222 tons of ore (guesstimate)times .017 ounces leaves 377,777 ounces of gold with an 80% recovery (guesstimate)= 282,287 ounces produced per year not 165,000. If these numbers are correct and we use 650 gold instead of 500 gold in their base case WGDF may have a very bright future. 650 gold price using the lower production numbers per year equates to about a 42% IRR. Would be much higher with the higher production numbers. Do your own DD these numbers are for fun only.

[zagorsk]

Using an average grade of .017 oz/ton I calculate a rock value of $11 per ton using a $650 /oz gold price. Extracting .017 oz. from a ton of earth and rock seems like a pretty dificult project. I would think the costs would easily exceed $11/ton. Has anyone seen the cost analysis for this project. Does anyone know of a mine that is currently operating profitably

[loantech1]

The cost of sales per ounce are $335 and the all in costs are about $414 per ounce. See pages 3 and 11 of the linked corporate presentation which was derived from their BFS. Pages 3-13 review other aspects of cost: https://www.westerngoldfields.com/i/pdf/2007-02_WGIpresentation.pdf WGDF's numbers even with the low grade are conservative as the amount of dirt they are permitted to move