Xali Gold Corp V.XGC

how much is an ounce worth in El Oro?

[horsewithnoname]

Correct me if I am wrong please:


Xali just signed the new tailings contract.
110000 ounces gold 70% recovery, means about 75000 ounces for sale
3 Mio ounces silver 80% recovery, means 2.4 Million pounds or ad current market prices about 25000 gold ounce eq

If I understand NSR correctly it is gross proceeds minus transport costs and smelter costs so lets say 500 USD per ounce leaving 1800 USD per ounce

So the base to calculate Xalis NSR would be 1800x100000 or 180Mio of which 4% are 7.2 Million USD
So this would mean an ounce gold in the ground in El Oro would be worth about 72 USD

Lets see how the backfill contract will take this into acount?

Also note that 7.2 Miillion USD are signifcantly more than our overall market capitialization.

I think it is time for the Xali management to ensure that the contracts they sign are functional and executable - the tailings project is lingering around for 10 years now and we have seen the idea of doing it ourselfs, or giving to third parties that can not live up to their committments - mangagment is responsible for selcting the right partners. This time I think it could work. GLTA

[horsewithnoname]

I guess I have to correct myself - in the new news release it says gross royalty andnot NSR as before - which means an ounce is worth 92 USD for XGCat current prices or about 11 Million CAD forXGC - almost double our market capitalisation.

[bonsai2]

Yes, i also understood 4percent from gross total. But what i understood payments to the municipality of El Oro have to be decucted  from that so is can go down to 3percent but not less than that. So 11 Mio minus payments to the town of El Oro?! So we are back to about 75usd an ounce?! Howrver, there are plans to recover remaining ore from the old mine which adds up to the tailings 100k

[horsewithnoname]

1% is 2.3 mio but the first 1.5 million that will go to the municipality will go to XGC - 3x2.3 plus 1.5 is 8.4 million usd to xgc - if understand correctly

[horsewithnoname]

I agree and also very curiousabout the backfill mining part ,if it works it has ramnifications on many aspects, maybe much more important at the long run than the simple immediate  financial impact

[bonsai2]

Good situation currently.. and great potential If it works out well.