Hello Squidman
About to leave but saw your post so will try to answer as best I can.
The plant capacity is 2,000tpd which can be met either through supply from any of SUF's Klipspringer deposits including the Leopard and Sugarbird dykes or the Sugarbird blow.
The M-1 was attractive due to its high grade and therefore its potential to supply mill feed at a low cost per tonne. It could be open pit mined like the Sugarbird Blow can. Having said that, if I am not mistaken and SUF news releases will confirm this, I believe the Sugarbird Blow has higher $/carat ore while the M-1 has higher carats/tonne ore. Don't take my word for it however, as I don't have the data in front of me. The NRs will provide accurate numbers.
Regardless, the Sugarbird Blow is a considerably larger pipe and should be able to be mined more economically due to larger potential volumes. All this is academic anyway as the 2,000tpd plant could not hope to keep up with supply from the dykes or blow let alone the M-1 if they are mined at full capacity.
The plant was meant to get production on line, test engineering, and produce cash flow, not meet all the potential mill feed available. SUF would need better than a 10,000tpd plant to begin to meet potential mill feed from all its ore bodies.
Its my understanding that most of the other potential pipes are on ground owned 100% by SUF but with this latest rinkle I want to confirm that. I have been trying to reach Chris or Lee but we keep missing each other but when I do get an answer, I will post it.
I also tried to find out about the recording or the party call but was told be the phone company that they did not have one. I do not know if SUF have one so you should call them Monday and ask Nick?
Really, the key to short term appreciation of SUF has little to do with the M-1. The stock will appreciate up through March and possibly April on the basis of their exploration efforts and success principally at Munn Lake and Lac de Gras. To a lessor extent, but any new pipes in Ureguay, Angola and on those other SA properties I referred to above will move the stock. The 2,000tpd production really only underpins the stock value in its current range.
The Angola rainy season is starting, so I imagine they will, if not already, be finishing up their aluvial operations there, so unless SUF announces new pipes in Angola, I don't anticipate significant appreciation from that quarter.
Despite their idisputable quality, the market has always discounted the value of SUF's African assets, especially those in Angola. It wants the stability of Canadian pipes, and that is where the speculative focus will probably be for the next four months. If you look at the companies charts over the past four years, you will see a very distinctive trend.
Good luck and regards |
