The Golden Goose
posted on
Jul 05, 2008 03:16PM
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Good evening NOT.
Although I enjoy math, I am fairly certain this is out of my league as I don't know the logistics of digging and trucking rock. That said I'll take a risk and from the back of my napkin, here goes.
Assuming we only truck the high grade ore and we use trucks to haul the rock daily.
How's 20 trucks carrying 25 tonnes each of ore daily... is this realistic? Does anyone know how much those trucks can carry? If so, feel free to jump in and tweak the numbers.
So, 20 trucks by 25 tonnes per day each is 500 tonnes per day to the mill and to the good side for NOT.
500* $1631 per tonne rock value is $815,500 per day in cashflow. Assuming production of of 300 days per year... not sure if that number should be higher or not, but lets use it, that gives us 300* 815500 =$244,650,000 in cash flow per year.
Anyone want to venture a cost of hauling this rock to the mill? At these grades, it doesn't really matter... example being, if this was only $1,200 per tonne, it would still be hauled and very profitable. Also, we have 233,000 tonnes of high grade, divide that by 500 per day and we can do this for 450 plus days.
So, by these rudimentary calculations, we could have monthly cash flow of $244,650,000/12 or $20,387,500.
Do you get the feeling that $20million in monthly cash flow can help secure a pretty big loan to build a Mcfaulds lake processing facitlity? What about adding another dozen or so drills to the site and ramp up our burnrate a few degrees?... and in doing so, hopefully add another few Eagle 1's and chromium finds to bump up our reserves.
I have no idea if these numbers are reasonable or way off, the point is our market cap is somewhere around $350million. Look at the numbers above and compare that to our market cap, and then whoops, factor in Eagle 2, the rest of the mcfaulds potential, and Windfall.
Given the potential cashflow from Eagle One, which I suggest we rename "The Golden Goose," we are going to have substantial cash to pay further exploration, development, and production costs.
I can see the vision Richard and Company, WOW!!!! my hat is off to you. This is a outstanding plan, I have Goose bumps thinking about the numbers, and perhaps Eagle One, our Golden Goose.
I hope some of our math/mining experts can jump in on this. The point here is the numbers can be tweaked in many ways, but, because of the ore value, they are very likely to come in exceptionally positive for NOT shareholders.
I encourage you all to due your own DD, not financial advise.
I can here a Guiness calling my name
regards
cwallace