Spanish Mountain Gold Ltd V.SPA

News

[highway3]

I like the size of the project now.Many more ounces produced.

[Heywood_Silvers]

We've come a long way........it used to be around 7 million ounces with half of it inferred.  Now, we have a 5.1 million ounce resource with 92% of it in M&I.  This project has become much more focused on the starter pit and we are on our way to a bankable feasability study. We alreay have a killer IRR @ $2k gold, we are certainly on more radars than just Sprott's. 

[StockPigg7]

The numbers went up a bit from the last corporate presentation in terms of AISC and down a bit on IRR and NPV numbers. Also, the capex is now 461M USD? Not complaining (maybe a bit) but yes those are still great numbers, just wondering why the capex went up so much.. i've been sleeping on this one a bit, but last I remember, the capex was under 300M USD. What changed? Was also wondering, how

[highway3]

Whats changed is the amount of throughput from 10000 tonnes to 200000 tonnes.This is double the size of what the previous PEA had given.Also the inflationary prices of goods necessary to build the mine are going up drastically.I hope inflation does not get out of hand before they lock in a price of the materials.

[highway3]

Meant 20,000 tonnes.How do you edit or remove a post on this bullboard?Cannot find this tool.

[StockPigg7]

Thanks, that makes sense.

[Heywood_Silvers]

Mining the ore won't be SPA's worry.  This project will eventually be acquired by a major or mid-tier.  If this occurs in an environment of $2.5 to $3k gold, this should have no problem fetching $2 in any buyout scenario.  Just my rough guesstimates, anything could happen.  All SPA needs to do is to make this project more and more appealing with each and every passing

[highway3]

Heywood, do you have concerns about inflation having a big change on the capital costs of this project? Metals are skyrocketing in price.Its also possible metal prices could have a temporary correction at the time of mine construction which would be nice to see.Its been on my mind.

[Heywood_Silvers]

We all know that costs are increasing due to the inflation of the supply of fiat currency.  We also know that precious metals are the best hedge against inflation.  So, while the AISC of the gold to be mined and the capex of the project increase, are they increasing at a faster pace than the price of gold? Wages tend to be sticky - once set for a 12 month period they are more or less

[highway3]

Thanks Heywood, i know Gold price rises with inflation so this will undoubtedly offset the rise in total costs to production.It will be very interesting to see how the numbers change to IRR and NPV in a few years time.

[Heywood_Silvers]

Yes, anytime we see refreshed PEAs, it is always nice to see improved numbers.  At the very least, adding more to the resource.  Since the current PEA has almost no inferred, it is a good bet that there is easily double the gold just waiting to be formally added.  Given the size of the project map, there is likely over 10 million ounces of gold to be had at Spanish Mountain. If no

[kkkrrr]

very good upside to the POG ...  low AISC and don't forget about the Phoenix-zone ... this zone is big and not included in this study ...  the minelife once build is >20 years...