hello 2mar$, today's report
am learning much about the nature of gold mining, and is a lot of fun ...
(A) we have own mining license-ready tenements, and we have exploration license-ready tenements, and others around us have the same but do not have a mill to extract value
(1) we are firstly just moving own (goodness borne of historical legacy, aggregated to the surface by nameless faithful living long ago, many chinese) dumps on owned tenements, some with mining license and others on exploration license
(1-i) doing god's work that be cleaning up the environment, and
(1-ii) given so, obtaining official, enthusiastic and alacritous dispensations re otherwise bothersome mining licensing on exploration tenements as we are not mining, just doing the governing authorities a great big favor
(1-iii) the size of the problems and therefore the load of favors are in the range of 15,000 t ore dump @ 2.5/3.0 g/t to 1,000,000 t @ 4 g/t to 5,000 t @ 5 g/t, etc
(2) we the comrades just okayed a deal offered up as tribute w/i our free-range feeding radius of 350 km range radius hubbed around our hard money factory
(2-i) 70,000 t of au ore JORC-compliant mine-able at 6.5-7.0g/t summing to 14,630 troy oz; metal value ~aud 1380 per troy oz, call it aud 20M
(2-ii) dd option period: 60 days, @ aud 20,000 option premium
(2- iii) upon signature of sale & purchase agreement should option be exercised, aud 100,000
(2-iv) on completion of s&p, aud 200,000
(2-v) on commencement of mining, aud 200,000 (there is no time limit on commencement of mining)
(2-vi) after commencement of mining, aud 100,000 per month for 5 months
(2-vii) call the sum grand total aud 1,020,000, or 5% of gold value. (aud 70 per oz)
(3) the cash cost of mining and processing works out to be between 380-507 (total all-in cost @ 426-569), depending on range of cyanide / fuel / etc spot cost at whatever time we commence extraction of value
(3-i) adding on the ore cost, and assuming more is not found at higher grade, the oz costs 450-577 cash per oz
(3-ii) seems okay, and no irr / npv calculation is needed, and no balance sheet effect needs to be considered
(3-iii) just need to keep the mill operating, that which gives the mill operators the competitive edge in an arena devoid of other such implements - a strategic advantage that highlights how feudalism must have worked, and why feudalism gave natural impetus to imperialism
(B) we are working on deal to tie up 95% of the known goodness w/i our natural free-range domain, and intend to faithfully grow organically, cleaning up the environment while doing his work
(1) gold dropping to 1,000 ?! bring it on.
(2) gold ramping to 10,000 !? bring it on later.
(3) in the mean time would say the macro script is tracking true, and the story playing well
(C) am traveling north this day to engage w/ folks otherwise on 3-days public holiday; the best time to get to folks
to talk about the gold-silver tailings project.
we need folks to wager on the direction of gold / silver price by partaking in the equity tranche
and
we require other folks to bet on the savings attributes that be silver/gold by engaging with the metal loans
whatever their interest, whether be gold stream on silver pond, we have the goods
shall revert w/ temperature of enthusiasm once known.
cheers, j
p.s. the 1M ton dump (@ 4 g/t, ~ 128k tro oz) that we have a call of duty to move and process, and once done, can commence deeper in-ground exploration for additional goodness (see what i meant by "X" marks the spot? just drill where the ancient folks marked where the goodness was) - the cost of this tenement was too little, at less than 1% of metal value
difficult to see why gold mining assets are so dirt cheap, but we are not to question irrationality, but to take advantage of it.
 |
