Member Info for aprogerson

@GTMufo Again you now talk about more funds being needed but this time for "mining" ... the only "mining" GWMO have planned is to engage a 3rd party operator to drive up GWMO's new road to site and dig up the OMCO & MJ tailings, load them up and then drive them back to the processing plant for gravity separation which will have ~50% metals recovery .... then repeat until all available tailings delivered to plant and collect gold/silver dore bars out of other end.

Still not sure what real risk you are trying to point out other than you don't really understand what they are trying to do therefore it must be risky so that they must need more money. Conflating this with prior copper situation from 2018/19 only demonstrates your lack of understanding of the issues and/or inability to express them coherently.

ATB APR

@lowpay Secured would imply ordered and (at least) a deposit paid against it usually with balance on delivery as any plant will need to be manufactured unless it is second hand/refurbished which is my expectation

ATB APR

@GTMufo I've managed £1m to £100m+ plus projects from design to commissioning so I know a bit about this.GWMO have stated their budget for Stage 1 plant which is part of the 50/50 JV hence 50% max liability for each partner.

Basically will need to:

1) produce a business case & get it approved - RNS for JV

2) Design, plan with a budget and a contingency for unplanned events - RNS for JV

3) Raise funds = Jan-23 fund raise for Stage 1 process plant

4) Get any external planning and/or licencing approvals = WIP since Jan-23

5) Order long lead-time equipment and plant = unsure but assumed underway using approved JV funds

6) Build groundworks and any foundations = WIP see Mining_Great Twitter photos

7) Order balance of equipment and plant

8) Build and commission plant = RNS states first production H2 2023

9) Ramp up production

10) full production capacity

The main reason I am chilled about costs and plan is that the site was previously used as a metal processing plant so some if not all of the main in/on-ground infrastructure, loading areas, access roads, tailings storage et al is already built so only has to be adapted removing need for foundations and most groundworks which is where a lot of the cost and time in a construction project goes.

We also know that Stage 2 and 3 process plant upgrades will be funded from JV revenues processing both GWMO tailings and any future mined ore plus 3rd party toll milling/processing. I fully expect Stage 1 tailings will then be fed back into Stage 2 & 3 plant to extract 50-75% of the remaining metals in due course.

I also expect GWMO to possibly debt finance Stage 2/3 once plant has been proven and they know exactly how much metal is in the remaining Stage 1 tailings. OMCO Stage 1 tailings alone will have £1-2m retrievable metals alone and that is a known-known with MJ tailings being a known-unknown until it is "explored", assayed fully and a JORC produced.

ATB APR

@peggacilla Deal concludes when any "Conditions Precedent" have been fulfilled as per NvS IG interview I understood that one of those would be the mining cadastre but there may well be others

ATB APR

@GTMufo Yet more non-specific half-sentences stitched together is not a coherent explanation ... please explain why you think that GWMO ...

> Do not have enough money and need to raise more?

> Will face delays on JV mill plant construction when no timeline has been issued?

Random assertions repeated often do not a coherent argument make

ATB APR

@lowpay The "material" referred to is the tailings

ATB APR

@GTMufo Do you understand construction and/or mining so you can say why you think that? ... especially when the tweet categorically says it will be producing?

ATB APR

@GTMufo Sorry do not agree with a umber of your points:

> behind schedule - there is no "schedule" as GWMO JV plant dependent on being licenced so not under tehir control; JV has actually carried on working on plant in PARALLEL to licencing which REDUCES overall timescale AND says GWMO are confident of getting a licence given site was previously used for same purpose

> Cash Raise - whilst nothing is guaranteed, JV is recommissioning existing plant NOT building a new one from scratch. To my mind

>> 1/3rd cost in preparing site and groundworks = already there !

>> 1/3rd cost = build site & plant = mostly there and currently being worked on

>> 1/3rd cost = commission yet to be done

Not sure you read RNS or understand how these things work given some of your comments especially as Stage 2 and 3 of plant will be paid for out of future earnings NOT cash raise and Stage 1 is just gravity separation so CAPEX is minimal

ATB APR

@121 From memory they also found additional copper close by but did not have sufficient drill holes spaced closely enough to include them with any confidence in the JORC. Personally I wish they had not gone for the ultra deep moonshot and had instead gone for the lower risk route and declared a much bigger copper JORC instead.

BH needs to demonstrate that the gold/silver strategy is working by ...

1) Getting gold/silver processing plant licenced, built and operational

2) Retrieve and process OMCO and MJ mine historic tailings to generate revenue

3) Prove up & JORC register the shallow, high-0grade OMCO mine vein extension

4) Get a 3rd party operator onboard to mine the new OMCO mine extension via teh JV plant

Et voila ... sink a few holes at M2 copper and significantly extend the existing JORC to de-risk bringing in a JV partner

No one said this was easy !

ATB APR

@GFMufo I have no idea what you are now talking about, spending how much a day to build or achieve what exactly ? ... please explain

ATB APR

Well spotted and really good positive interview with NvS

ATB APR

@GTMufo What part of .... did you miss?

1) £130k cash at end Dec-22 plus £800k capital raise in Jan-23 =£930k

2) Once processing plant build is complete and licenced to operate they will be generating revenue from ...

> own OMCO & MJ tailings = £1.63m in 2023 (see breakdown below)

> 3rd party miners supplying ore to JV plant for toll-processing

> when Stage 2 Heap Leach plant is built can reprocess 31kt OMCO ore for circa 50% recovery of Stage 1 processed ore

From May-22 RNS "an inferred mineral resource of approximately 31,000 tonnes grading 1.6 g/t au and 3.0 g/t ag for 1,600 troy ounces of au metal and 3,000 ounces of ag metal" so when gravity processed (stage 1 plant under construction) then:

> gravity gold recovery = 1,600oz JORC *50% = 800oz @$2k/oz = $1.6m revenue

> gravity silver recovery = 3,000oz JORC *50% = 1,500oz @$22/oz = $33k revenue

> sum revenue = $1.63m or £1.36m in 2023 assuming not-too-demanding 50% recoveries

IMHO GWMO is a MCap £4.23m with cash and cashflows as follows:

Cash = £930k max (£130k Dec-22 plus £800k Jan-23 minus 6-months run costs over winter)

OMCO tailings Stage 1 processing = £1.36m revenue ... initial plant in 2023

OMCO tailings Stage 2 processing = £680k revenue ... requires upgraded plant so more likely 2024 (400oz gold & 750oz silver or £1.36m *50% HL recovery)

Clearly future cash generated = gold/silver sales revenues - plant run costs but profit on £2.04m revenues from OMCO tailings alone is likely to generate £1m+ profit and AFTER paying for GWMO 50% share of plant upgrade to Stage 2 Heap Leach

My best guess is JV will go for a multi-pad Heap Leach that they can start small and scale up as they progress reducing risk and time to get to Stage 2 so that they can reprocess OMCO tailings and generate more cash ASAP

Looking good GWMO

ATB APR

Interested to know why we have dropped on Final Year results to end Dec-22 plus updates since all of which by definition have already been published via RNS ??

ATB APR

@Chisler Looks like a few chancers trying to talk down the SP whilst we wait for processing licence to be approved & plant to be commissioned..

GWMO is cashed up due to Jan-23 £800k raise, plant is under construction and tailings have a JORC resource against them ... all we need to do is top-up when we can and wait

Anyone know the plant capacity in ton/day?

ATB APR

@lowpay I think BH has already stated that processing plant in down in the valley so unaffected by "mountain" weather where the claims are clustered. Check website shows a map of relative locations of all claims and process plant if taht helps

ATB APR

@GTMufo Copper play was effectively shelved in 2019 in favour of Gold/Silver due to high costs of upgrading copper JORC without a JV partner so don't expect much effort or money to be spent on M2 from GWMO.

As for possible cash raise GWMO are MCap = £4.85m with circa £900k cash and a gold/silver processing plant coming online over the next 3-6 months that can realise circa £1.6m revenue from its OMCO JORC tailings resource. This means GWMO hires trucks to drive along tehir newly built roads, dig up the tailings from spoil heaps, load trucks and send to own JV mill/processing plant.

This is grounds for some serious optimism

ATB APR

good to get brief summary of progress & status to end of dec-22 date but more importantly to reiterate way forward.

finances & cash position:

> cash at dec-22 = euro 150k or £130k

> capital raise = £800k in jan-23

> implied cash position = £930k minus 6 months opex costs

naturally concerned that cash position has been significantly eroded by investment in new jv for gold/silver mill & processing which is under construction albeit subject to final approval before it can start operating.

omco tailing processing:

prior may-22 rns stated "...for the olympic tailings project comprises:

· an inferred mineral resource of approximately 31,000 tonnes grading 1.6 g/t au and 3.0 g/t ag for 1,600 troy ounces of au metal and 3,000 ounces of ag metal"

when gravity processed (stage 1 plant under construction) then:

> gravity gold recovery = 1,600oz *50% = 800oz @£2k/oz = $1.6m revenue

> gravity silver recovery = 3,000oz *50% = 1,500oz @$22/oz = $33k revenue

> sum revenue = $1.63m or £1.36m in 2023 assuming 50% recoveries

> 51kt ore set-aside for reprocessing via stage 2 plant to recovery up to 800oz gold and 1,500oz silver

mineral jackpot & omco exploration targets for future tailing processing:

additional rns may-22 reported omco & mj tailings have not been officially been jorc hence assessed as an "exploration target":

· material underlying the omco tailings: 3,400 - 6,400 tonnes grading between 0.5 and 1.2 g/t au and 1.2 and 2.1 g/t ag.

· olympic mine co**** stockpile: 9,000 - 12,000 tonnes grading between 0.9 and 2.4 g/t au and 2.0 and 5.1 g/t ag.

· mineral jackpot spoil heaps: 4,200 - 7,700 tonnes grading between 40 and 140 g/t ag and 0.3 and 0.3 g/t au.

in summary:

gmwo can realise at least £1.36m revenue from omco tailings (using jorc stats) minus as yet unknown commissioning & processing costs via its new plant under construction but likely to be at least another £800k assuming £500k "worst case" costs.

looking good for a serious rerate from mcap = £4.85m once new plant approvals to operate have been granted and gwmo becomes a micro-cap gold/silver producer

atb apr

@jc the big issue for me being heavily invested and heavily underwater is how many new shares will be needed (ie %dilution) required to settle clns, possible match-fund new capex and recapitalise gcat once lse prospectus has been made available so that gcat has ability to issue more shares (if required) to make this happen.

imho post-funding gcat will revert to circa £15m mcap or roughly 2.5x todays mcap as some certainty returns. however, we do not yet know the denominator (total shares in circulation), so if current mcap is £6.1m (1.88b shares) and sp=0.325p ....

> no new shares required & mcap =£15m then sp = 0.8p & ~1.88b shares

> +10% new shares & mcap = £15m then sp = 0.725p & ~2.07b shares ... raises £0.6m new capital ?

> +20% new shares & mcap = £15m then sp = 0.665p & ~2.26b shares ... raises £1.2m new capital ?

> +30% new shares & mcap = £15m then sp = 0.615p & ~2.44b shares ... raises £1.8m new capital ?

clearly we do not know how much any new lead funder will require in new equity to be committed by gcat as part of any non-dilutative capex raise, but my sense is it will not be £0. my *** packet calcs above also assume no new warrants as part of any deal which seems unlikely given gcat does not have a strong bargaining position and any refunding will be based on current sp not post-funding figures unless rmc can renew his magic circle membership.

atb apr

No surprise that operations have been shut down for 2 months of Q1 given cash position BUT new high-grade zone has boosted gold production "The plant processed a total of 6,246t at an average grade of 3.60g/t through the CIL circuit and a further 12,858t at an average grade of 1.25g/t through the Heap leach circuit to realize a total of 627 ounces in gold sales."

So broken down and assuming circa 50% recovery ... giving 627oz production

> Plant 1 Mill/CIL = 6,246t *3.6g/t *51% / 31.1 = 369oz

> Plant 3 Pilot HL = 12,858 *1.25g/t *50% / 31.1 = 258oz

In Summary:

Operations = we know that from early Mar-23 both open pit and new high-grade zone are now operational so both Plant 1 & 3 should be able to ramp up production as everything comes off "Care & Maintenance", but we don't know how fast given cash position.

Gold Output = new high-grade zone is a game-changer for GCAT but we don't know how fast this can be ramped up given this is a new zone and has had little if any mine development.

Plant 4 construction = we know it has been started but construction ceased due to poor cash position and some capital items to increase capacity of both mine and process plant have been ordered and are due for delivery

Funding = we know from last RNS that Mill End settlement has now been agreed albeit with $800k outstanding to be "resolved" clearing the way for "new" main funder to come onboard and we know DD is underway although name of funder and terms of funding are unknown.

We know GCAT is a going-concern with most everything coming off C&M in early Mar-23 doubtless required to preserve cash. We have long lead-time capital plant items confirmed to be delivered but will need funds to install and commission before they can come online.

Progress at least !

ATB APR

Well re-reading the RNS both KG and RMc now own NO shares in GCAT having transferred their shares to Mill End ... so whatever we may or may not think of the directors they have paid a VERY high price for the Q4 funding mistakes made.

Now we just need to get the RNS clarified as to the lower settlement bound with Mill End ... is it 0.035p or 0.35p as that decimal place makes a HUGE difference!

ATB APR