Eagle Hill Exploration Corporation V.EAG

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[madfatter]

If you graph  frankmans appearances on the bull board with eags good news items they match perfectly.So i guess you could say franman is good news .not

[tomgranite]

Put him on ignore and concentrate on EAG. I'm hoping that the PEA will be out next week, if not it surely must be out the week after. I'm not sure what to make of the board reshuffle. Is Mike taking a backseat because the PEA is disappointing, or are Dundee gearing up for the next stage in EAG's lifecycle i.e. quickly move to production. SA have no funds to put in, so unless anyone

[gold_Gold_GOLD]

Mike is based in Jakarta and his expertise is in that region of the world, not Quebec.  Makes sense that he takes a back seat on a development project in Canada.   When SA took over this project I met Mike in Quebec City, he mentioned slowing down and doing less then.  I don't think he even came to PDAC this year.    Also makes sense that John is not in the CEO spot

[tomgranite]

I'm pretty sure they will skip the PFS stage. They have done a thorough job on the PEA in order to go straight to BFS, they have said that on more than one occasion. A large amount of infill drilling and some bulk sampling will be required, but I have no idea how much they will need. Dundee have waited a long time for this and I'm sure they will happily stump up the required funding if

[gold_Gold_GOLD]

I think you might be right about that.  It does not  happen often but there is precident to go straight to a BFS if the PEA is more in depth than normal.   Kaminak Gold published a very in depth PEA and are skipping the Pre-Feas.  They have quite a good project,  IRR 26% after tax, 2 year pay-back at 1250 gold price.  They have a heap leach operation so much better

[tomgranite]

They released a NR on Sept. 18th saying that work had commenced on the PEA. That is 7 months ago so surely they must publish it soon and it must be a very in depth one at that.

[tomgranite]

Looks I was wrong, PFS done by 2017 is the plan.

[gold_Gold_GOLD]

Well I think we are in the not great but not terrible either category.  Cash costs are low which is good.  IRR under 20% is not great but improving gold price and expanding the current resource could really help.  I think companies looking at this will like the low cash cost.  If they have to move to shaft vs ramp access, they better have a lot more than the 1.5mil ounces

[tomgranite]

I agree goldx3. My guess is that because there is no WOW factor, they have decided to keep their options open and do a PFS. This will give them more time to drill at depth and see if sinking a mine shaft will give them access to more gold. Also, if NORD project can deliver cheaper electricity with power lines. Could be an interesting webcast.

[JamesWW]

not sure where the IIR of " The PEA outlines the design of a 1,200 tonne per day (“tpd”) underground mine producing 106,200 ounces of payable gold annually for 7.8 years at an average total cash cost of $558/oz of gold (US$480/oz). At a base case gold price of US$1,200/oz the project has a pre-tax internal rate of return (“IRR”) of 23.6% and a pre-tax net present value discounted at 5%

[tomgranite]

Post tax IRR is 17.2%