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Angus Energy announces transformational joint venture with Cuadrilla & Lucas Energy
Aim-listed Mongolian explorer Petro Matad to drill four wells in 2018


Solomon Gold Share Chat (SOLG)



Share Price: 22.05Bid: 22.05Ask: 23.00Change: 0.00 (0.00%)No Movement on Solgold
Spread: 0.95Spread as %: 4.31%Open: 22.60High: 23.00Low: 22.05Yesterday’s Close: 22.05


Share Discussion for Solomon Gold


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manygoals
Posts: 99
Off Topic
Opinion:No Opinion
Price:22.05
Future SP
Tue 23:41
Can anyone tell me if this will hit 3 figures and do they see a future ceiling for the SP. I would like to know how high we could possibly go.
 
Ronin1
Posts: 341
Off Topic
Opinion:No Opinion
Price:22.05
RE: consider whom you engage with
Tue 22:48
Thanks DG1, that summary is along similar thinking to mine. Very balanced I think.

Thanks Lotto, agreed, too little metallurgy done so far to understand the right recovery rate. My guess is 85% at this early stage. And agreed, lots of interesting exploration in the south
DG1Investor
Posts: 965
Off Topic
Opinion:No Opinion
Price:22.05
RE: consider whom you engage with
Tue 22:40
Thanks Ronin - very interesting reading.

Along a similar topic the below was posted by PT on ceo.ca about a week back (apologise for stealing PT)- caught my attention so thought id share apologies if you had already seen it. he is discussing a similar thought process to yourself - although he does counter pay back in less time when accounting for price of higher grade core (I think !)

Brent says there are lots of variables and our guesstimates are no substitute for proper desktop studies. Having said this... If I do some back of the envelope math, at 0.68% CuEq I estimate revenue per mined tonne at roughly US$35 assuming US$3/lb copper, ~85% recovery and ~10% dilution. Site costs at Wafi-Golpu are estimated around $35/t so at US$3.00/lb copper Alpala looks like a break-even proposition at best and a marginal, but economic, deposit at US$3.50/lb copper.

There are reasons to believe OpEx may be lower than expected... Cascabel has access to hydropower and the company suggests the ore is amenable to cheap autogenous milling. Apples and oranges but Kemess UG block cave estimated OpEx under US$12/t.

Unlike other large mines/projects, there's no need to pump seawater many kilometers up a mountain to desalination plants for water, which contributes to outsized CapEx at these projects. Even still, assuming a very conservative $5bln CapEx for 30Mtpa throughput (higher end of the capex intensity curve), the high grade core pays for the project in 4 to 5 years.

Feet firmly on the ground, Alpala in its current state is marginal at best. But Alpala is just the first of many prospective targets at the target rich Cascabel camp. Too, $SOLG.L $SOLG has dominant land position across #Ecuador which could produce the next generation of Andean supergiants to feed a world hungry... no, starving... for new copper mines.

If you are betting on $SOLG.L $SOLG $CGP you are betting on improving copper prices and betting on the exploration upside. I think these are winning bets.
Lottohopes
Posts: 3,265
Off Topic
Opinion:No Opinion
Price:22.05
RE: consider whom you engage with
Tue 22:38
Ronin: the SRK NI document mentioned that there may be some sort of a trade off between grade and recovery, suggesting we can’t have high percentages of both, yet. The key word of course is yet, as studies are only preliminary. Sav shared a lot of info on this metallurgy aspect, which will come to the fore as the project progresses towards economic feasibility. I don’t understand the trade off aspect, so anyone with a background who could explain, would be helpful.

There is of course another aspect to all this. Solg is no longer a one trick pony. A near surface project adjacent to FDN (we have plenty of tenements on same corridor) with similar grades would ignite interest. IMHO. DYOR
stevie_C
Posts: 161
Off Topic
Opinion:No Opinion
Price:22.05
RE: Dreamers
Tue 22:32
Hmm. Seems the troll is back in charge today. When will you people learn to stop feeding him.
Ronin1
Posts: 341
Off Topic
Opinion:No Opinion
Price:22.05
RE: consider whom you engage with
Tue 22:24
Operating costs is a big question. I've done my own sums but $38 was just a hypothetical number. Solgold put up their conceptual estimates in their presentation in September but I think don't use those slides now. NI 43-101 thing etc.

but calculating operating costs is challenge number 1.

Now, IF operating costs are about $38 and metal content is $48 then yes, it looks like there will be an operating profit.

I'd caution a few other complications like recovery, i.e. can you get every bit of metal out or will it be 85% ish. ie. $40.80

Recovery matters to me too.

Then after paying taxes in ecaudor and getting 85% share of profits, what would be the profit?

Hypothetical numbers again. If annual cash flows on a 0.68% mine are say $100million and the mine costs $3billion to build. (i've heard $5bln) mentioned, would you build a mine at the cost of $3billion to get back your money in 30 years time? Then and only then, would you start making profit.

Personally, I'd try something else to invest in.

Again, this is why grade matters and why drilling aggy matters.

And yes, who knows what else is lurking on the cascabel tenement. if they find something then the potential economics can change.

By the way, the Kaz Minerals 0.3% cu eq is unusually low. I think because they don't even have a strip ratio. The ore body is literally on the surface, just need to pick it up and chuck it in a crusher.
grafters
Posts: 6
Observation
Opinion:Buy
Price:22.05
Update Alpala - Aggy
Tue 22:23
The link added does not always work -just go to mining.com -news and the item is the third one down at this stage

GLTA

moureeses8
Qalibashi
Posts: 1,615
Off Topic
Opinion:No Opinion
Price:22.05
View Thread (2)
RE: 98D7
Tue 22:17
98

You are an absolute twatt.

You don't fool anyone about your desire to buy here.

You never owned you have no idea about re entry level and you are paid to de ramp here.

You are sickening in your constant negativity.

You are a complete and utter cretin .

I will ensure you are not allowed to get away with your rubbish and lies.

Why do you bother coming on here?

You hate LTH here you hate Solg you hate balanced discussion.

You are a complete nut job.
grafters
Posts: 6
Observation
Opinion:Buy
Price:22.05
View Thread (3)
What Price Alpala -Aggy
Tue 22:12
Are you awake on the other side of the world- if not this should help shake you out.

An article in Mining.com -Auction of 2 billion Michiquillay Copper mine in Peru. 10 bidders a whose who of major Cu miners

Resource of 1.1 Bt cu grade 0.6295 at 4% cut off

SOLG -Alpala with assays and extended drilling to come MRE 1.08 BT grade 0.68% Cu at 3% cut off

If you throw in what potential AGGY could be WHAT PRICE WOULD IT BE WORTH on the market
NM says he will not sell CHEAP ???

This gives some perspective of what might be possible .

www.mining.com/rio-teck-hubday-among-bidders-massive-peru-copper-project/

keep the faith

moureese8
Lottohopes
Posts: 3,265
Off Topic
Opinion:No Opinion
Price:22.05
Drilling costs
Tue 22:12
I was looking at the graph of drill costs, it spiked hugely in May-June 2017. I expect drilling errors are expensive in not just direct costs but time lost and data being skewed. SRK mentioned drilling errors in its report last year (comments under prospectus) and suggested many improvements. Hence I m all for the geophysical-chemical model being refined, before the drill bit even hits ground, frustrating as it is.

Looking at the story in reverse, SOLG may have realised the drilling errors were due partly to the existing geo model (and inaccuracies in that model which I expect get worse as we go deeper). And the errors ran the risk of blowing the budget. So with a budget of over $65m yearly ahead and over 177,000m of drilling, it would make perfect business sense to revisit the geo models, use newer tech that models 1.5-3km and refine the drill targets.

Just my humble opinion. DYOR. Good luck all




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