Just to clarify, they are not completing a BFS as not required, just a Feasibility report.
But reckon they may get the JORC completed before the feasibility - what that JORC has included we don't know. However, it should have the Indicated & Inferred figures in - which will include the Ore & tailings they know they can access & asses - hoping they mention with further RC drilling they can upgrade the JORC. Recall it was mentioned they don't need to carry out RC drilling - please see post below on the LSE website dated 24 July 2017
" It will not be necessary to do infill or RC drilling to upgrade to JORC. It is possible if the sampling technique is done correctly inside the mine that we can upgrade to JORC without the need for drilling another cost saving. The goal is to advance the project and bring about production in a way that limits any future dilution for shareholders. This is another distinction from a pure exploration project where dilution is a regular event"
30,000 ounces Au of Proven Reserves - = 30,000 x $1250 Oz = $37.50m / 1.30 (Gbp/Usd Fx) = £29m of proven reserves.
Bit confused with your 5M Oz produced @ 80% RR = Because that would mean there is still
1 M Oz left to be produced / sold.
1M Oz x $1250 = $1.25B / 1.30 = £961M Gross value. Not sure how you got to a 1.6 g/t figure for the 1 M Oz remaining on Vein 6 of 8 g/t? "
Maybe you meant to say 1 M/t x 1.6 g/t = 1,600,000 grams = 51,441 Troy Oz x $1250 = $64m / 1.30 = £49m Gross NPV just for the remaining in the facility!
Very good analysis, just a matter of waiting until they get into the mine & asses it & if they don't require to do infill RC drilling to upgrade to JORC - we shall then have some idea what the reserves are. However we know the below they reported just for Vein 6.
____ ________
There is only one recent unpublished estimate or data relevant to the reported foreign estimates available which relates to the depth extensions of the Gubong No. 6 Vein, undertaken by Tigris (2012), which stated that an exploration target for Gubong Vein 6 with the following ranges may be present:
Lower Range Exploration Target - 1.21 million tonnes at 6g/t Au.
Upper Range Exploration Target - 2.28 million tonnes at 8g/t Au.
Values: Mid value of Target is (7.26m + 18.240m / 2 ) 12,750,000 grams = 409, 922 Troy Oz x $1250 = $512m = £394m
