* Gold forecast A$1,900 - $2000 /Oz by year end. No big gold discoveries recently and with political unrest the future is bright for gold.
*Lynseys mine is batch mill for profit share which is easy to account for. We get mgt fee and also 49% but anything over A$1,600 / Oz we get 70% profit. Finalising accomodation / water supply and tenders for contract rates. Will update shareholders with schedule & costs per Oz when complete (this quarter) & when portal area safe we will move in soon after.
* Currently great savings to be had with additional capacity in the industry.
* Virgin Bush to mining to rehabilitation in 3 months - very happy with progress
* lessons learned over 3 months - bigger diggers now used giving better productivity. Rigid haul trucks now changed to 6WD trucks so no downtime in wet conditions & less overall operating costs. Now also hiring operators internally so no middleman fees.
* The different mill will not upset Norton. It's cheaper and has quicker processing (12 days)
* double grades being mined so this quarter is going to be exciting.
*POW - drilled upper section, permits in and approvals imminent. Tenders sent out already for cost comparisons.
* working down to declines, rich vein gold, 15-20k Oz by mid 2017 from there alone but will aim to ramp up.
* ASX is major possibility to tap the Ozzie market - dual listing contemplated and wants our own mine to get well over 40k Oz of gold to entice II's and possible mergers. It will also maximise profits snd revenue.
* Big value in Togo - not dead and not forgotten as an asset or operation. It will certainly add value and mining permits still ongoing.
I'm in no doubt that DR is in full control here and working his way towards serious shareholder value. Roll on 2017 as quite frankly the ups and downs don't concern me one bit given the trend. Happy to hold and accumulate as and when I can. The upside far exceeds any downside of which I'm struggling to find.
For every $100 increase in PoG, we effectively gain $74 (average across all tributes). You can ignore costs at this point as they are already covered by the $1640, so it just adds straight to the bottom line.
Therefore, $1846 adds $150 per oz or at 1.75 ER to GBP=£90/oz additional profit.
Shrew - as you say DR very positive and a great update - 3g/t is double A & A grade so that's a real step up. Also have options this time over the choice of toll mill as not tied to Norton necessarily.
The terms of the agreement are as follows:
5% of predicted profit to be paid upfront to a 5% holder of the permit
A$70,000 to be paid to the owner of the right to mine from first gold production
2% royalty payable to Norton Gold Fields
All profits to be split 50:50 between the right to mine owner and Keras.
Lots of I's to dot and t's to cross on other activities which will become clear in this exciting quarter for the company.