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05/02/19
09:12
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Originally posted by vertigo:
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"Aul is going to target the higher grade resouce to generate as much free cash as possible. Thought they had already been doing that but havent had much success . " You thought wrong, they were targeting easily accessible sections such as RoD tests to determine such data as face to recovery grade uplift "Quarterly staff and admin costs suggest things are not all that conseritive ." You have to remember during the quarter, not only did they have the admin costs, but also mining, processing and drilling contractor staffing costs. A lot was needing to be done and was done. "Aul has a small plant and would need exeptional gold grade ( which so far has not transpired at the mill ) to ever produce mid tier amounts of production. Lots of producers out there that are mid ters that spruik low cost production. Make a small proffit or frequent losses that have market caps less than 10 x aul ,s 14 million. Loss making mid tiers have market caps of 2_3 times aul but also most have hudreds of thousand of oz of proved or probable reserves which is a class or 2 above AULs Inffered resource. " AULs plant is small in comparison to some others but can be expanded. The current plate capacity ATM is ~80,000t/a and if the assumption by some that the McNally reef and others can average around 20-30g/t not accounting for mining dilution and they get a recovery of around 90% by sending off the inseparable by gravity circuit non-free sulphide gold for smelting via concentrate then they could theoretically achieve a little over 67,000oz/a best case scenario. So lets just quarter that to be very conservative and use a high AISC of $1300, gives a net of $8m Yes lots of if and buts.. but you get the picture....
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You really believe that AUL can achieve 20 ,to 30 grams from McNally over a year to get 67000 oz. correct me if I,m wrong which I,m sure you will , but I believe that at it’s hey day in 3 oz head grade Morningstar was producing at best 30 000 oz a year. On hand sorted ore . You think it’s possible to over double this . IMO on the drill results from McNally so far even on 10 fold grade factor . It’s impossible.