Signal Gold Inc T.SGNL

Hammerdown FS Compared with MAE/Point Rousse

[nozzpack]

These calculations are proivided in the Table below..

Notes..ALL VALUES IN CANADIAN DOLLARS

1.....Hamnerdown stats from 2022 FS
2....Annual Production of 50,000 ounces per year
3..Total Production increases to 310,000 ounces from 250,000 ounces
 4..LOM increased to 6 years by adding 10,000 ounnce/year from Point Rousse
5..milling rate increased by 950,000 tons to include Point Rousse
6..Trucking unit costs diminished by distance  to 71 % of MAE ( 100 km / 140 km )
7..Initial capital costs reduced by $65 million..due to point Rousse having all mining and milling facilities
8..Initial Capital of $10 m to include Hammerdown start up facilities including admin bldg etc and includes closely driled definition drilling @ $150 per m to reduce mining dilution at Hammerdown mine.
9...this is initial scoping  of Merger but accurate enough to demonstrate considerable more upside of merging the two mining assets..aprox $150 million  extra in free cash flow.
10....assuming operating sufficiency of contingency and sustaining capital  , cash to the bottom line after 6 year of mining would be in excess of $400 millon.

Everyone should review in detail the statistics on which the input and output  results are computed in the table below..

Only when  fully reviewed and revised as appropriate, should this table pasted on the MAE Board

Tks

 

	MAE	Merged	Merged
POG ( $cad )	$2200.00
Mine Life ( Yrs )	5		6
ROM Ore Prod	1895		2850
ROM Gold Grade	4.46		4
Mill Throughput (TPD )	700		1250
Mill Recovery	95		94
tons milled	1890		2550
Gold Produced	250000		310000
Average Annual Production	50000		50000
Mining Costs$/t	$4.49	$4.49	$13.0m
Mineral Process/t	$48.06	$48.06	$122.5 m
Trucking	$25.50	$18.10	$43.5 m
G & A	$12.04	$12.04	$31.5 m
Contiungency	$25M		$25m
Total Initial Capital	$75 m		$10 m
Cash costs	$280 m		$ 245.5 m
Cash costs/0z	$1120.00		$820.00
Total Sustaining capital	$5.0m		$5 m
Total Costs	$285m		$250.5 m
AISC/oz	$1140.00		$835.00
Average Annual Free Cash flow	$53 m		$68 m
Payback Period	1.7		<1.0

 

	MAE	Merged	Merged
POG ( $cad )	$2200.00
Mine Life ( Yrs )	5		6
ROM Ore Prod	1895		2850
ROM Gold Grade	4.46		4
Mill Throughput (TPD )	700		1250
Mill Recovery	95		94
tons milled	1890		2550
Gold Produced	250000		300000
Average Annual Production	50000		50000
Mining Costs$/t	$4.49	$4.49	$13.0m
Mineral Process/t	$48.06	$48.06	$122.5 m
Trucking	$25.50	$18.10	$43.5 m
G & A	$12.04	$12.04	$31.5 m
Contiungency	$25M		$25m
Total Initial Capital	$75 m		$10 m
Cash costs	$280 m		$ 245.5 m
Cash costs/0z	$1120.00		$820.00
Total Sustaining capital	$5.0m		$5 m
Total Costs	$285m		$250.5 m
AISC/oz	$1140.00		$835.00
Average Annual Free Cash flow	$53 m		$68 m
Payback Period	1.7		<1.0

[karlschranz]

Nozzpack ,impressive AISC with 835 can$. Please explain your calculation???? I see the last numbers....????? you will definitely be among the top 5 miners in the world with this numbers.

[DoumDiDoum]

nozzpack: 7..Initial capital costs reduced by $65 million..due to point Rousse having all mining and milling facilities 8..Initial Capital of $10 m to include Hammerdown start up facilities including admin bldg etc and includes closely driled definition drilling @ $150 per m to reduce mining dilution at Hammerdown mine. Good work.  I did review quickly (not in details) and I

[nozzpack]

Yes, you refer to the crushing and on-site sorting plant ( concentrator )  to be installed at the HammerDown mine which I recall would cost about $25 million or so. That would reduce both milling and transportation costs. I ignored this option , assuming that the $5 million US saved annually by eliminating the 40 km extra distance to Nugget Pond would easily cover those benefits . The

[nozzpack]

Note also that three tailings ponds will be needed if processing occurred at the Hammer site. Point Rousse already has a large capacity in pit  tailings facility....another savings. Also the extra ore haulage would add to the crushed aggregate at Point Rousse  which is used in construction etc

[DoumDiDoum]

 If you're confident in your assessement than post it on the MAE board and see the reactions! I would add that the greatest resistence I received was more on the CEO.CA site than on SH when I proposed a joint venture between SGNL/MAE.

[nozzpack]

MAE has excellent and advanced exploration projects much like Signal. Other than Orion, these could be spun out to MAE shareholders as part of the merger with Point Rouse. MAE currently has a market cap fair value in the $105 million range. Point Rouse about $35 million or so but its provision of essentially all of the mining facilities for the Hammer mine, saving MAE $60 million or so, it'

[GrumpyInvestor]

It's getting more and more obvious that what you really want is for MAE to get their hands on SGNL's mill for cheap. I suspect you have a lot more "skin in the game" in MAE than in SGNL.  As DoumDiDoum has told you, the idea of a merger between MAE and SGNL has never been well received on MAE's stochouse or CEO.ca bullboards. If you feel your scenarios are so wonderful

[nozzpack]

I do not own any MAE shares. Hype is now gone from MAE. Reality has now set in. Their chance for funding remains remote. Merging with Point Rousse transforms Maritines outlook for early development of HammerDown . Instead ,Point Rousse in care and management will be a drag on our cash flows, unless management takes their head out of the sand. Point Rousse as NewCo merged with MAE would quickly

[GrumpyInvestor]

Hey, I find it attractive. I also find unicorns attractive, but I understand they don't really exist ... MAE has voted against a merger proposed by Signal (Anaconda) before. You should be on MAE's board, telling the shareholders how terrible their management is, and insist they request a merger with SGNL's Point Rousse assets. After you have succeeded, come back here with your

[karlschranz]

But, that is a long shot not yet properly analysed.....you mean not as proper as your 835 can Dollar AISC?

[nozzpack]

MAE will save $25 million US.....just read Ramblers economic valuation of the cost of trucking its ore to   Nugget Pond which is 40 km from its mill....$5 million US per year ....by milling its ore at Point Rousse. It will save $60 million or more by not building redundant mining facilities at HammerDown that are operatiinal at Point Rousse. Point Rousse also has a first class tailings

[DoumDiDoum]

Keep your sell pitch for MAE shareholders. Do your proposal on their bullboard. Use your "@Lukasz" username on CEO.CA and post on the MAE channel.  Good luck.