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28.5¢ egan street resources limited

Ann: Quarterly Reports - March 2018, page-13

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Davisite

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01/05/18

22:26

Post #: 32813323
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Originally posted by Barolobill ↑

The PFS had ore drive width at 2.5m x 3m high. Width is critical to Rothsay due to the narrow vein nature of the deposit 1m+\-. The ore drive width had to be as small as possible to minimise dilution. Small/narrow is harder to work. So it’s a trade off between workability and dilution.

The ore sorter could be a game changer, allowing significantly more ore to be mined each year, leading to higher production rates with the 200kt off the rack (I.e cheap) processing plant after sorting. More gold production earlier in the project life means a significant positive impact on the NPV.

The key is to get into production and producing gold/cash ASAP. After the next MRE update, they should have enough gold for 4 years production, at around 60-65k p.a That is enough to finance the project and start mining. They will inevitably find more with all the drilling going on. Underground drilling platforms will help as well.

It’s all there if they can execute.

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I agree with all this, but they already have enough gold for 5 years at 60k p.a. What I am reallly hoping is we move to 100k p.a. with a 5 year life although I think something around a 400k total resource is more likely.

Last edited by Davisite: 01/05/18

EGA Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
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