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Genuine question to Quady and others:
Were we to go ahead and build a mine ourselves at Cascabel -
How long would it be till we are selling our first tonne of ore?
and
How much would it cost to get to this stage? (i.e. actually producing ore)
I'm not going to rain on the idea as a response, it's a genuine question for those who genuinely have this scenario in their heads (as those of us hoping for or expecting a sale are clearly now in a minority on these boards).
And let's keep it civil.
It's certainly not the most straightforward option, Sean, but it is better for LTHs than a continued erosion of sp and significant further dilution.
As for how much it would cost and how long it would take, a good SR would include that information amongst the options.
The dilution would be fatal to us small retail holders yes (that was always my view) but there seems to be those who think we can build a mine with what we've got in the bank.
I'd like to hear that scenario.
Good morning eish and Seanhunter.
I will start with how long it will take to build a mine and start producing revenue.
This is I feel part of the strategic review.
But an open cut at near surface grade with the surface infrastructure. I would say around 18 months.
It depends what model we adopt. Can we successfully target high grade gold near the surface with good copper content.
Next we are not mine builder's.
Nor is BHP or any other miner.
When mines get built they are done by civil engineering companies with the correct project management in place using the most modern methods which are continuously updated in real time.
Yes technology has moved on.
Lastly I get accused of saying construction is the only way.
I have never said that.
I have always said that looking at the facts, evidence and most likely outcome, it remains consistent that we move into the construction phase of the Solgold story.
I now believe we will JV.
But also believe that our hand is going to be forced with the expiry date of the exploration licence.
Given that you are the main supporter of the idea of going into production on here Quady, with all due respect your vagueness on this issue is alarming. I am 100% against the idea but I at least thought there was a "plan" which there clearly isn't.
A JV looks less likely to me than an outright bidder.
What about a royalty deal - surely that has to be the only option we actually have if we are serious? How would it work?
DM...in the public domain are the following facts...
1 We have enough cash (including the CGP SOLG shares) to last until 'at least' June 2024 without a fundraise and even then, we have headroom in Royalty Financing.
2 Scott is working on much cheaper costings for the mine, using for example Chinese engineers and different approaches...only a matter of time before this emerges...
Plus - "It will be in the Strategic review" is no kind of answer.
I think a bid, a JV, the money running out, or the licences expiring are ALL more likely to happen before we see a "Strategic Review". It's basically a term for kicking things into the long grass. We don't need any kind of drawn out review - the decisions are fundamental and simple and would be made by a strong management team in an afternoon.
Personally I think a mine is a suicide mission and for the company talk of it is all part of a smokescreen. If it's not a smokescreen, maybe it's a threat - buy us now or we will run ourselves into the ground, bankrupt the company, the licences will be lost and there will be many years of chaos before anyone gets this resource packaged up as neatly as we have it.
I hope I'm wrong - but what is the path to building a mine that starts bringing in income?
DM, when you take into account the government requirements, another royalty deal is a complete no-no. We're already committed to giving away too much of our top line. Add to that the fact that debt would be ruinously expensive and you'll see why funding of any description looks highly unlikely.
Sean, let's keep it civil, as you say.
I think waiting for the strategic review the company have repeatedly told the world they are working on is sensible. Initially it probably was a tactic to distract from the share price collapse, but they say they're undertaking a review and have outlined what it will cover. No doubt SC is probably trying to shift the company in the meantime, but the absence of any buyer (evidence: no bid) means we have to do something, and we are not drilling... So that leaves the review.
You are, of course, within your rights to wait until it is released to accept it is happening. Most here are content to wait a very long time for events to unfold.
Hi DM
First apologies because I have many posters filtered so I may not have picked up the nuances.
As to your question, the answer is yes, Scott is looking at cost factors that the previous PFIs ignired by looking at North American engineers rather than the cheapest (and possibly the best) in the world, i.e. the Chinese...
(And of course it may produce compelling evidence for the likes of Jiangxi to pursue a deal harder...)
My apologies DM
While the Cost engineering was done to the requirtemnts of a US organisation below, it appears that all the engineering work was done by Australians...now why would you do that...?
"The capital cost estimate meets the requirements for a pre-feasibility study consistent with the Association for the Advancement of Cost Engineering ("AACE International") cost estimating guidelines for a Class 4 estimate. "
AACE is a non-profit organization with about 15 employees at its headquarters in Morgantown, WV.
Experts:
Mineral Resource Estimate Cecilia Artica, BSc MSc RMSME (formerly) Mining Plus
Mineral Reserve Estimate Aaron Spong, BEng FAusIMM CP (Min) Mining Plus
Environment, Social, Tailings & Water Tim Rowles, BSc MSc FAusIMM CP RPEQ Knight PiƩsold Pty Ltd
Metallurgy Peter Gron, BSc FAusIMM Wood plc
Process Plant & Infrastructure Steve Klose, BEng MSc FAusIMM Wood plc