- gold is " still " at an all time high
- a project like spa is - just sitting
- even with $1250 spot gold - spa - still profits
- spa is already drilled out - if they dril lanymore may as well mine it by drilling it.
- if more drilling is " wished " do it after project is up n running
- drilling now - only defers project and delays up n running
- why aim for a " 1.2/million oz reserve " ?
- wil lthis enable a portion of the deposit to be ear marked for - bankable gold
in which to finance the project ?
Could one also place graphitics in a subsitution of - reserve ? Yeah... if carbons are at all a potential - secondary mineral - and if at all there were
ample carbon in the deposit - i tend ot think of this as equiv to a reserve -in terms of,
it would
back the gold with additional profits... That's a potential reserve that really supports
without a financing - noose - attached.
-----------------------------------------------------------------------------------------------------------------------------
Could one readjust the - 2019 PEA ? I think it could be reajusted - and well....
Here's the original - and below - i'll do a revised version - how i see it.
In a perfect world of course....lol.
.ORIGINAL 2019 - PEA - COSTS The following table summarizes the estimated capital costs:
| Direct Costs | Initial Capital Cost
(C$ Million) |
| Overall Site | 6.7 |
| Open Pit Mining | 70.2 |
| Processing Plant (including Ore Handling) | 77.4 |
| Tailing Management Facility & Water Management | 46.7 |
| Environmental | 12.0 |
| On-Site Infrastructure | 24.0 |
| Off-Site Infrastructure | 17.1 |
| Sub-Total | $254.1 |
| Indirect Costs | |
| Project Indirects | 58.9 |
| Owner’s Costs | 9.3 |
| Contingencies | 41.5 |
| Sub-Total | $109.7 |
| Total Initial Capital Cost | $363.8 |
----------------------------------------------------------------------------------------------------------------------------
MY OWN REVISION - HOW I SEE IT....
The following table summarizes the estimated capital costs:
| Direct Costs | Initial Capital Cost
(C$ Million) |
| Overall Site | 6.7 |
| Open Pit Mining | 10 |
| Processing Plant (including Ore Handling) | 10 |
| Tailing Management Facility & Water Management | 30 |
| Environmental | 12.0 |
| On-Site Infrastructure | 10 |
| Off-Site Infrastructure | 0 |
| Sub-Total | $78.7 |
| Indirect Costs | |
| Project Indirects | 58.9 |
| Owner’s Costs | 0 |
| Contingencies | 10 |
| Sub-Total | $69.9 |
| Total Initial Capital Cost | $148.6 |
$148/million - CAPEX - would look pretty great with $1750 gold or $1250 gold.
Especially when cost per eachounces is only - $659/oz
And.. .with 400/million outstanding shares.
But... can it look better ?
It could if... graphitics were applicalbe.
And.. even better if - warrants were dewalt with and the following
measures taken to reduce capex and indirects + warrants.
MY OWN RUN DOWN - OWN NUMBERS - REVISED - Over all site costs - same
Open pit mining - only $10 million reserve - rely on gold ounces coming out
noneed to have all costs up front - when one is mining the gold
processing Plant - purchase the used plant - $3.2 million - with %6.8 million - buffer
for set up costs and additional machinery if applicable - upgrades
Tailings - if carbons were ever brought onscene - less waste ores in tailings
justifies less costs for tailings
Environmental - same.
Onsite infastructure - tad less.. .use portables.
Off site - zip - no need.
INDIRECTS Project indirects - kept same - but... what is this ?
Owners costs - zip... they alreadsy have shares - less gouging.
Contingencies - less - decided ot drop this a tad - forcesd the junior to
work all the hard to pull the gold and make the project work
Deal with trhe warrants + special shares...
Cleans the sharestructure up - lean + mean -
327/ million out standing or less.. if warrants are cancelled - but how.
Would they take a settlement of current values, or ?.
It's how i see the project - streamlined - But.... time will only tell - how they decide to shape it. If they ... wasted all tihs time and only have a PFS to show...
A pfs that chisels the 4.1 million ounces down to 1.2 million ounces...
And nothing else to spice it up ?
Then... will i stay around ?
LOL
The above post is not investment advice but rather...
a post on how i envision the spa porject evoloving.
Will it happen ?
Not holding my breath...lol
Cheers....