Originally posted by wombat777
Some numbers on potential life of mine and annual revenues.
I've assumed 50% of the resource is identified as a reserve for the basis for a project and a life of mine of 10 years from this as a starter pit ( noting Estelle has potential for numerous other large size deposits ).
Annual revenues from a resource of this size could easily be in the AUD $183M to AUD $442M ballpark.
View attachment 1381485
For a project with similar characteristics in terms of grades and production method and is in construction:
https://www.vitgoldcorp.com/
- 200Koz pa production planned.
- Currently in construction.
- Current market cap CAD $280M.
- First Gold Pour is in H2 2019.
Potential depth and length of Estelle resource could be similar based on preliminary drill data we have for Estelle. Screenshot below from video above for indication of dimensions of the Victoria gold resource.
View attachment 1381489
See NVA announcement from February
https://www.asx.com.au/asxpdf/20180226/pdf/43rxq7ggfrv51h.pdf which includes details of a historic hole at Oxide prospect with an intercept averaging
0.43g/t over 365m. There was another hole with a highlight intercept of 1.14 g/t over 41m from 30m ( i.e. near surface ).
View attachment 1381495
thanks wombat, I think that's an illustrative comparison. Looking at the funding required and their past share price history clearly the big jump in value was the equivalent of the JORC and looks like around 500m was required to build the mine etc (with approx 200m in a cap raise). I think this is a really good long term prospect but the hurdles to jump explain the lack of rise in the share price. The snow lake ipo and further drilling at estelle should get the share price moving GLTAH
