Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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Good, we are starting to trundle on now. Hopefully 0.8's soon
Can sell 2.5m, but only buy 100k at full asking. We should see a leg up in the SP soon.
Sorry, your post on here late on Saturday, no email.
Still trying to wake up after a hectic weekend
Really busy yesterday and I’ve still not fully taken in your email Apro, but certainly the lower grade ore needs processed by the milling circuit which also feeds the CIL treatment. So you may well be right.
Hargreave24, feel free to share your numbers on here. All useful debate.
Stockbox interview today, looking forward to it.
@Hargreave Whose figures are you talking about and underweight in what way or why? Random "I disagree" statements don't help anyone
ATB APR
Your figures are underweight mate. Check recent updates. As jn last week. And in TG
@ID78 It doesn't really matter whether you decouple the Crush/Mill>Grind>CIL plant from the tailings plant processing tailings or 80% depleted ore as the Tailings are already ground ready for processing to recover 52% of the residual gold. The latest Q1 Operations report says "A total of 44,846t were delivered to the processing plant from mining operations" this equates to approx. 15kt per month which is equivalent to the current ball mill capacity of 500tpd or 15ktpm ... hence my prior observation that the main "processing plant" is currently running at or near 100% capacity with any additional ore being stockpiled as the Q1 Ops report tells us they are doing.
So gold recovery from "main processing plant" is approx. 90% comprised of contribution from:
> Crush/Mill>Grind>CIL plant produces gold at 80% recovery = 80% recovery from ROM ore
> Tailing plant produces gold from Tailings at 52% recovery = 20% remaining gold x 52% recovery = 10% of ROM ore
I agree that both plants have 15kt processing capacity but I don't believe that this equates to 30kt of ROM ore/month, but 15kt as the output of one is the input to the other regardless of whether they are decoupled or not. The benefit of decoupling them is that (for instance) the Tailings plant could still be run from stockpiles if the CIL plant is taken offline for maintenance or upgrades without completely stopping gold production.
ATB APR
I hadnt seen your post, Aprogerson. I agree, mining the ore will be the issue.
And as you say the AISC will drop so the $650 profit per ounce will increase with the HL pads..
Too tired to take your post in fully I will read it again tomorrow :)
Those numbers were wrong…
- HL could produce 3000oz a month (with the 100kt pad and the smaller pads)
- CIL and tailings 2000oz a quarter, assume 650oz a month.
- Decoupling CIL and tailings and it doubles to 1300oz a month.
- In total that is 4300oz a month and closer to $2.5 mill dollars a month in profit of the gold sales (assuming $650 dollars profit per oz)
The point remains, I would get the 100kt HL pad commissioned and (if needed) fund elution plant and infrastructure changes by debt.
The upgrade to CIL and tailings, to double the production, I would do at a later date, funded from the gold from the HL and the current CIL and tailings (decoupled and working separately) and a new elution plant.
Robbie did suggest most of the ore was to come from the HL pads and I feel the CIL and tailings are going to take a back seat. The low capex and opex HL do seem to be his focus and it makes complete sense from a finding point of view.
@ID78 I think the main issue is ramping up the production from the underground and open pit to feed the plant. Details taken from Q1 Operations report and my thoughts:
Mine Output: Q1 from underground and open pit
> To CIL/Tailings plant = 44.8kt @2.5g/t or average circa 15kt/month
> To Heap Leach = 22.7kt @1.72g/t or average circa 7.5kt/month ... was probably stockpiled for Q2 use
Current Processing Capacity:
> CIL/Tailings = 15kt/month @90% recovery (80% CIL then 52% of remaining 20% gold=90%)
> Heap Leach = 20kt/month @52% recovery (estimate rising to minimum 60% as HL optimised)
So Q1 mine production provided:
> 100% of CIL/Tailings plant current (Q2) 15kt/month OR 50% of upgraded 30kt/month capacity
> 38% of Heap Leach plant current (Q2) 20kt/month OR 6% of upgraded 120kt/month capacity
Yes they need to upgrade the CIL/Tailings plant and boost efficiency but they REALLY need to boost mine production !
Bottom line is that CIL>Tailings process plant looks like it is currently running at 100% capacity until the new ball mill and additional CIL tanks are added, whereas the lower grade ore output will need to be tripled in Q2 to fully utilise the 4 new 5kt pads giving 20ktpm HL capacity as confirmed by Robbie on IG interview.
Current Process plant potential output = 1,745oz/month max
> CIL/Tailings = 15kt/month @90% recovery @2.5g/t = 1,085oz/month ... existing plant (Jan-22 was circa 1koz)
> Heap Leach = 20kt/month @60% recovery @1.72g/t = 665oz/month ... newly built plant being commissioned
Planned Process plant potential output = +4,410oz/month max additional output
> CIL/Tailings = +15kt/month @90% recovery @2.5g/t = 1,085oz/month ... extra plant capacity post upgrades
> Heap Leach = +100kt/month @60% recovery @1.72g/t = 3,325oz/month ... yet to be announced & built
Once complete this will be one serious operation with only modest upgrades needed to make 2koz/month but capable of producing over 6koz/month or 72koz/annum . Note: Once the Heap Leach is fully commissioned the %recoveries should go up to 60-70%.
You have to admire their ambition and as they scale up mine/plant output the AISC will drop and FCF will be huge BUT the biggest challenge will be scaling up mine production to feed this monster !
ATB APR
Working in tandom!!! (Working in series)
I don’t really have enough info on the capex costs.
The large HL pad is a must as it is low cost and may produce 2500oz or more a month. With the smaller pads that is more than 3000oz a month.
Decoupling CIL and tailings is also important, I think this could result in 4000oz a month (currently it can do 2000oz) working in random.
These updates should hopefully not be so costly.
To handle 7000oz a month I assume the new elution plant is needed.
I’d then try to find the new CIL plant and tailings upgrade from the 7000oz a month gold sale (>$4mill a month profit).
The main costs would therefore be the elution plant and the infrastructure changes.
Afternoon all,
A good interview by RM, it put a bit more meat on the bone so to speak. For me, the key to the forthcoming expansion of gold output and AISC reduction will be the optimization and successful commissioning of the larger "commercial" Heap Leach pad along with the upgrade to the Cil and elution plants. The extent of the Capex required will depend on the details of these plans which we are not yet aware of. However, I believe that the experience of our CFO Paul Reeves, in raising similar debt/streaming & equity ( approx $100 million ) at his previous Company ( THX ) will be invaluable in achieving a successful Capital raise at whatever level, with minimum dilution to shareholders. However as we are due to find out the Company's plans shortly, patience rather than speculation is preferable for me as a LTH, as long as we are given information in a format that we can all understand.
In almost any other industry, I'd say slow and steady wins the race and pay for what you can afford, as you can afford it. I usually worry that fast expansion in business often has more to do with scaling up the top line to pay big salaries that it does to increase the bottom line to pay divideds. However, in mining and gold mining, in particular, when you take too long, you can miss cycles completely. On Gcat, I have the comfort that second largest shareholder will make the call with his interests mostly aligned with mine, so I can relax a little and let it come down to specifics of the situation and deal at hand. If our shareprice blows up, I'd be more than happy to issue some overpriced paper. But if it stays depressed then it's either debt or the build as you earn slow boat. Probably debt, all things considered.
So we know that really good progress is being made across all fronts at Kilimapesa and we are looking very much on track to get to 24Koz. But away from the gold side of things, probably the most significant part of the interview for me was to hear RM talk about the right financial strategy to get us there. In answer to this, he said the following: "It's a trade off between how fast we want to build the mine, do we want to take an extended period of time and try to do the whole thing out of cashflow or do we come to the market at some stage to raise the money to get it done." (He said that GCAT are investigating options on this and he doesn't want to dilute at these levels as the second largest shareholder. He also said that at the moment GCAT are fully funded.)
If it came to a choice between CGAT slowing down and paying for the expansion out of cash flow, or doing a market raise, what would people prefer as the way forward? - I know there are probably a few 'it depends' in the answer.