“The Company is also pleased to advise of encouraging results from the grade control drilling in the Butterfly Pit. - Hole BFGC0279 – 8.65 g/t Au over 6 metres including 22.3 g/t Au over 2 metres - Hole BFGC0273 – 7.72 g/t Au over 5 metres - Hole BFGC0268 – 4.82 g/t Au over 7 metres and 3.85 g/t Au over 2 metres"
Also my previous back of the envelope calculation was not correct – I noticed the following in the last quarterly report;
"Minecomp Pty Ltd has carried out pit optimisations on thirteen additional deposits within the Kookynie Project. This work has used a $1,600/oz (AUS) gold price defining in excess of 3.5Mt of ore with an average grade of 1.46 g/t Au. This allows Nex to forecast approximately 5 years of production for the planned 700,000 tonne per annum Orient Well Carbon-in-Leach mill"
Based on this my back of the envelope calculation changes as follows;
700,000 tons through the mill at 1.46 gt brings in approx 36,000 ounces pa. With cash costs at say $1,000 an ounce (nex has said $875) and a gold price of $1,600 brings in profits of approx $22m pa. Not considering recoveries etc
So good upside in the shareprice.....potentially....and this DOESN'T factor in increased grade...increased gold price etc
These are just my thoughts....please DYOR !!!!
NME Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
