There you go
@MIStragic proof of life of a sorts
Seriously though what does this get us - probably just enough to cover admin expenses for 15 months and nothing much for drilling. Oh I forgot Cannon or an unknown party is going to help out there!
Regarding Connon:
- No deal has been announced, so we have to assume that it will be soon.
- Given that we've not much in the bank it's probably fair to assume that the incoming party will make the running and spend up on our behalf
- Then there's permitting: Three months might be a reasonable guess here if all goes well, but even if the incoming party has a proven template, it still has to be fleshed out with an appropriate design, geotech assessment, schedule and risk assessment etc, etc. Lets be generous and say that preparing the document will only take two weeks. That only leaves two and a half months for the paper work to go through assuming there's no questions.
- So we have permission to start. We then have to put a portal in, decline to the first ore level (at least) and put an extraction development in. Say three months
- We then have to extract a reasonable parcel of ore to enable the processing mill to get to a reasonable steady state so that we don't sent too gold much out the other end. Typically this would be somewhere around 15 - 30,000 tonnes for batch process like before. If the ore is going into someone else's blend then we have an metal accounting nightmare. In either case who is going to evaluate the outcomes on our behalf? Based on past performance milling of a parcel of 30,000 or so tonnes will take 3'ish weeks. Mining of 30,000 tonnes will depend entirely on the method adopted and the rate achieved. Lets be generous and say a month.
So we're already up to seven months before the mining party receives any income. I assume they will want to recover their capital investment and other costs before we see any income. How long will that take? Pure guess but lets assume excellent recoveries, a ripper POG and ready access to a mill (i.e when we want it, not when its convenient for the mill - dreaming I know), so lets punt on another three months.
Based on nothing but guesswork we're now up to 10 months or so from the start before we see any money from Cannon. Meanwhile I would of thought we were supposed to be drilling in SK; this needs to be done when it's not snowing, i.e mid-Spring, Summer and Autumn, i.e starting soon!
Of course this is all guess work and my opinion - it will be nice if it all works, we get a white knight and there's plenty of money to do stuff, but to me it looks like its going to be a juggling act to make things work when we need it to and in a timely manner.
