Robert: As I understand it St Andrews' mill is ready to run and they are waiting for the Exall/Glimmer mining operation to start to feed them
500 tons per day in March, 1997. they will be custom milling this and should make a clear profit of $10 per ton, more or less, after all costs.
The mill is a modern high efficiency mill and they are going to add a gravity circuit soon. This $5000 per day will finance themining of their underground operation on their own reserves(which are even greater than your post would indicate). The grade there was 0.28, which yields around $130 per ton of gross metal value, however they will consume the greater part of this in mining expenses, but they should be able to clear in the $30-40 per ton range operating at 500 tons per day. The mill production might be upgraded to around 1200 TPD if the rock type is forgiving and so they have the potential to earn an average of $25-30 per ton at 1200 tons per day.(~$30-36,000 per day)
There are about 70,000,000 shares out there so the potential is to earn around $30,000 x 360days/year =about $11,000,000 per year.
which is 16 cents per share. In addition they have two other mines which will be brought into production as soon a possible.
They have recently exited the Canadian equivalent of chapter 11, and after all debt was traded for shares they emerged debt free with a set of very good assets. Their stock is worth at least $1.00 at this toime and if gold goes up and all three mines go into production they could be worth ten times that.
Bill Jackson |
