under the radar., page-15

Having reviewed the numbers again I agree with Shareholder that the resource is more likely to be around 100K-110K ounces at 1.75-2.0 g/t Au. But with recoveries like those announced on Thursday the Mine Truck and Treat plan could throw off some serious cash.

Here are some rough numbers to ponder:
Resource: 2.0mt @ 1.75g/t Au for 112,400 oz
Mineable Reserve: Convert 50% into minable resource = 56K Oz
Mine Production: 250,000t over 4 years
Gold Production @ 80% Recovery: 11,250 Oz per annum
Cash Per $100 Oz margin: $1.125m per year
Cash @ $500 Oz margin: $5.625m per year

Now with these cash flows the company could fund some serious exploration activities to search for some more substantial deposits. They could also look at acquiring new projects. This could be done quickly with no further dilution for existing shareholders because the profits from mining would fund all exploration activities. From presentations and discussions with management this is clearly the strategy the company is keen on implementing.

I can't go into more details on potential profitability until I have details like the strip ratios, mining costs and toll treatment processing costs but at least the above numbers give some idea of the potential scale and profit of the projects per $100/oz margin.

All this for a market capitalisation of $12.0m. This week should be a defining moment for Metaliko.

Cheers
Aksier