@speculator101 I agree with @Grubble They can’t just leave out...

@speculator101

I agree with @Grubble

They can’t just leave out costs from their feasibilty, especially basic costs like stripping, they will be in there IMO. You don’t get $107 million of debt funding based on a sloppy feasibility that leaves out basic upfront costs.

Here is an interview with Heath Hellewell after they announced the 23% cost saving on the original design and construct CapEx from the original feasibility.

http://australianminingreview.com.au/capricorn-metals-just-the-start/

The turn key model has allowed CMM to reduce the upfront Capex as it allowed a significant amount of contingency costs to be removed.

Also below is the answer to your concern, I think. They don’t need to stockpile and blend the high grade lateritic ore due to bringing the construction of 4.8MW mills forward. You do know what laterite ore is? It’s a common feature in wet tropical areas but also occurs in arid environments. Below I’ve posted a link to an exploration geology MSc thesis dealing with the subject of lateritic gold depoists, with particular reference to Western Australia if you want to learn about them. The stripping either pays for itself or will make money for the company IMO. Cash flows are more or less immediate.Esh

“Q: What led to the decision to bring forward the implementation of the 4.8MW SAG mill and 4.8MW Ball mill at project commencement?

There are numerous advantages. Simplicity is an important part of the decision; not having to shut the plant down in a couple of years and retro-fit a second mill just makes for more simple execution.

Most importantly though, it will mean we won’t have to blend our very important laterite ore during the first few years of production. The laterite, on average, is our highest grade ore and is also the first material to be mined.

Not having to stockpile and blend that ore through the plant translates into significant project cash flow advantages. The new flow sheet with equal sized mills at 4.8MW also resulted in a much easier to operate process plant and also gives us the ability to fine tune the size to which we grind our ore so we can extract as much value as possible from our processing plant over the life of the project.”


https://core.ac.uk/download/pdf/11985462.pdf