Member Info for aprogerson

Stunningly good news ... to raise $10.5m/£8.2m for a £10.7m MCap junior miner against future gold production is an amazing coup for RM and the BoD

The 'Deal' ...
> secured conditional non-dilutive financing of up to US$10.5m in 2 tranches
> pre-paid gold purchase agreement with OCIM Metals & Mining SA ('OCIM') subject to conditions, ... not stated
> Tranche #1 = US$7m to be drawn on or before 31 December 2022
> Tranche #2= US$3.5m to be drawn down on terms yet to be agreed

New capital to be deployed for fully funding ...
> expansion Kilimapesa expansion to target 24koz pa & final commissioning in Mar-23
> completion Phase 2 exploration drill programme at Nyakafuru Project in TZ

Commentary:
A very good non-dilutative gold streaming deal allowing GCAT to fully fund to 24koz production by end Mar-23 at circa $1,100/oz AISC, but at a fixed price/discount to current gold price with these details as yet undisclosed.

Doubtless there will be some 'Sell on news' folks, but for everyone else this takes away all-pervasive funding concern given the obvious delays in rolling out the expansion programme apparent since Sept-22 when the timeline started to drift and news started to dry up.

This should now pave the way for Q3 Operations Report to end Sept-22 which is now well overdue and will undoubtably confirm some of these delays and depressed gold production. The current warrant holders whose warrants expire at end Dec-22 will likely be disappointed, but this in turn will also help boosts SP as forward dilution will be much reduced as all alternative funding stream is now confirmed as in place.
ATB APR

Q3 Operational report is now well overdue so SHOULD land next week
ATB APR

GoldPlat divested GCAT as it was a non-core business ... they were always going to sell tehir stake down the only question was how much and how fast as they need the capital to invest in tehri own core business.

IMHO this is great opportunity to buy up shares into their sells ... someone will be and their hands will be much stickier!
ATB APR

@Sre Q3 Quarterly reports are taking 6-8 weeks to issue so I'm expecting Q3 Ops report (end Sept-22) next week as that will be week 8
ATB APR

@InTooDeep Frankfurt Audio https://youtu.be/ikLlj4rrwQg also mentions:
> Tanzania AND another project in pipeline
> HL processing 65-75kt ore/month when fully commissioned
> Vim Rutha is prime resource target with extraordinary results

Can someone please post link to FULL presentation with video please?
ATB APR

@Mickey Tweet deleted!
ATB APR

@bebeto Wikipedia has a very simple explanation of HL process for Cyanide extraction of gold using barren and pregnant ponds that we can see named on GCATs plan and process diagrams. We also know that GCAT uses Carbon-In-Leach process to extract the gold which it then sends to its elution plant to finalise extraction of gold Dore. Presentation page 18 shows plant process diagram for both plant 3&4 although I would expect this extraction and reprocess of barren solution to be shared plant.

HL % recoveries are how much gold is recovered from the ore not about %impurity of any dore bar produced. So 50% recovery of 1.5g/t grading rock should produce 0.75grammes gold/ton ore processed. My expectation using HL and CIL extraction process is that any dore produced will be relatively pure with few biproducts.

Precious metals
The crushed ore is irrigated with a dilute alkaline cyanide solution. The solution containing the dissolved precious metals in a pregnant solution continues percolating through the crushed ore until it reaches the liner at the bottom of the heap where it drains into a storage (pregnant solution) pond. After separating the precious metals from the pregnant solution, the dilute cyanide solution (now called "barren solution") is normally re-used in the heap-leach-process or occasionally sent to an industrial water treatment facility where the residual cyanide is treated and residual metals are removed.

During the extraction phase, the gold ions form complex ions with the cyanide:
{{Au+ (s)}+ 2CN^- (aq) -> Au(CN)2^- (aq)}}} {{Au+ (s)}+ 2CN^- (aq) -> Au(CN)2^- (aq)}}}
Recuperation of the gold is readily achieved with a redox-reaction:

{{2Au(CN)2^{-}(aq)}+Zn(s)->{Zn(CN)4^{2}-(aq)}+2Au(s)}}}{ {{2Au(CN)2^{-}(aq)}+Zn(s)->{Zn(CN)4^{2}-(aq)}+2Au(s)}}}
The most common methods to remove the gold from solution are either using activated carbon to selectively absorb it, or the Merrill-Crowe process where zinc powder is added to cause a precipitation of gold and zinc. The fine product can be either doré (gold-silver bars) or zinc-gold sludge that is then refined elsewhere.

Suspension lifted and GCAT trading again albeit with a HUGE 18% bid/offer spread so really difficult to see what a buy or sell really is
Would be good for RM to get some positive news flow going
ATB APR

@Bebeto Yes understood but if you provide 500oz of gold in a 25% purity or 85% purity Dore bar it is still 500oz of gold assuming that the by-products can be dealt with by the processor.

Not sure where you get 8% NSR from ... could you explain?
ATB APR

@Bebeto As you know I am the first to point out that the level of information in the quarterly operational reports has been reduced with Q3'21, Q4.21 and Q1'22 being information rich and Q2'22 being information poor. However, that is not the same as what you are implying with recent 'omission' regarding the CLN from the accounts which clearly needs to be explained as it was not previously announced via RNS and is clearly material.

IMHO I think the BoD needs to provide/resolve:
> funding issues for Kilimapesa expansion plus Nyakafuru mine build with a clear plan, timeline and breakdown
> revised Kilimapesa JORC compliant MRE
> clarity on Kilimapesa and plant & mine plan to hit 24koz by end Mar-23
> Retire recent CLN
> Reissue clear diagram of licence areas for both exploration and mining licences from Cadastre
ATB APR

@Bebeto Dore bars get smelted and assayed with miners being paid for the metal content minus a fee for processing, just because bar contained other metals does not mean the ounces of gold produced get 'discounted' as you are suggesting plus other metals also get a 'credit' so also get sold.
ATB APR

We also know that the MRE as per Jun-22 RNS gave us 10-year LoM at 24koz production by increasing confidence levels of existing resources based on Batch 1&2 infill drilling but added very little new resources. Batch 3&4 was expansion drilling around Kilimapesa mine around historic and artisanal mines so this will be NEW resources to expand the MRE to support the future move to 48koz/annum production profile.

Updated MRE was due end Oct-22 ... when you're ready then Robbie !
ATB APR

I thought I'd try to work out what seems to be going on ahead of Q3 Operational Report ... what can we infer?

Production Forecast slide 12 from Oct-22 Presentation:
======= FY23 = /month === FY22/23 = /month == comments
Plant 1 - 10,515 ---> 876 ==== 7,087 ---> 590 ... yet to be upgraded & taken offline
Plant 2 - 1,621 ---> 135 ==== 1,373 ---> 114 ... offline & upgrading from Q2'22
Plant 3 - 2,343 ---> 190 ==== 2,281---> 190 ... so plant 3 operational from Jul-23
Plant 4 - 9,585 ---> 799 ==== 4,455 ---> 371 ... under construction
Sum ---- 24,000 -> 2,000 ==== 15,196 --> 1,296

Historic Production: Q1'22 = 1,266oz and Q2'22 = 746oz

Production Forecast by quarter/month:
======= Sum === Plant 1 == Plant 2 == Plant 3 == Plant 4 == comments
Q3'22 - 1,683 ---> 955 === 158 ---> 570 --> zero ... P1 upgrade Dec-22, P2 complete Nov/Dec-22 & P4 build WIP
Q4'22 - 1,851 ---> 876 === 405 ---> 570 --> zero ... P1 complete Nov/Dec-22 & P4 build WIP
Q1'23 - 5,662 --> 2,628 === 405---> 570 --> 2,059 ... P4 complete Jan/Feb-23
Q2'23 - 6.000 ---> 2,628 === 405 ---> 570 --> 2,396 ... Full production @2koz/month
Sum -- 15,196----> 7,087 === 1,373 --> 2,281 --> 4,455

IMHO Forecast production forecast above seems to make sense given P1 and P2 need upgrading and P4 is currently under construction. This forecast implies 1,662oz in Jan-23 & full 2koz production in Feb-23 onwards so yes GCAT will miss their prior Dec-22 target but not by very much.

For the record I still think that the above GCAT presentation production figures are understated as theoretical P1 production is circa 950oz pre-upgrade so 876oz/month post upgrade seems very conservative.
ATB APR

@Bebeto I had done loads of what/if analysis on HL operation based on Plant 3 pilot rates, grades and capacity ... HOWEVER information provided since Q1 Operations report has been sketchy and often contradictory. I also tried to back-calculate presentation numbers but even though I could match GCAT numbers within a few % I had little confidence as I had to make so many assumptions.

Caracal website photos show HL physical capacity configuration as:
> Plant 3 = 3x 7,5kt pads ... so 22.5kt capacity, not 4 pads at 30kt as previously stated
> Plant 4 = 2x 60kt pads ... so 120Kt capacity
Implies overall HL capacity = 142.5kt and plant 3 to plant 4 ratio = 5.3x

Oct-22 presentation (p12) shows 24koz annual gold output as:
Plant 1 = 10,515oz
Plant 2 = 1,621oz
Plant 3 = 2,343oz ... from pads 1 to 3
Plant 4 = 9,685oz ... from pads 4 to 9
However Plant 3 to plant 4 output ratio = 4x BUT presentation pages 18 & 19 show Plant 3 as 3 pads not 4 whereas Plant 4 looks like 2 large physical pads each split into 6 'pads' of 20kt each, so inconsistencies remain.

I remain of the view that the ACTUAL HL throughput will not be 142.5kt/month as it will be run on a 2 to 3-month cook cycle to maximise %recoveries.

So to produce 2,343 +9,685 = 12,028oz or 1koz/month using 1.5g/t ore implies:
> 3-month cook cycle = 122.5/3 =47.5kt/month throughput @1koz/month =0.66g/t or 44% recovery
> 2-month cook cycle = 122.5/2 =71.3kt/month throughput @1koz/month =0.44g/t or 30% recovery

IMHO I suspect recoveries to be better than 53% recovery achieved by pilot plant in Q1 2using a 2-week cook cycle so this implies that GCAT will be targeting much lower AVERAGE grades going through HL most likely though a 3-month cook cycle.
ATB APR

@joycopter Good point ... £1.2m metal at 50% recovery funds GWMO for another year AND funds Stage 2 plant development AND allows EXPANSION for next seasons drill programme
... now that would be really good news
ATB APR

@RCMP Disappointing ? Please re-read the RNS and my *** packet calculations below showing £1.2m revenue before costs assuming a minimal 50% metal recovery for a £5m MCap junior is outrageously good ... especially when you consider that the remaining upto 50% metal can still be recovered from the tailings at a later date once process plant has been updated to Stage 2 and then 3. FYI CIL plant typical recoveries are around 90-94% so another 40-44% metal is still recoverable!
ATB APR

Resolute Mining MCap £134m just announcement $140m debt capital raise plus upto a further $60m equity capital raise to reduce debt.

Wow ,,, any some posters think we are having a hard time!
ATB APR

@lampedusa You are correct the 2koz/month target production by end Dec-22 has indeed changed and is now end Q1'23. I have posted this many times so is not "new" news and although a tad disappointing is not a shotting offence given the amount of work they have been doing.

From memory tone of messaging changed Sept-22 and defacto change in Oct-22 presentation
ATB APR

@Boom plenty of posters including myself have tried to provide genuine responses and links to RNS and latest presentation and still you proceed to post unsubstantiated accusations and at first subtle and now blatant scaremongering statements whilst GCAT is in voluntary suspension.

Frankly I've seen some shocking & poor behaviour by posters on a number of BBs, but you take the proverbial biscuit as most blatant and acerbic deramper especially when repeating things that have been repeatedly pointed out to you as untrue.
Reported so hopefully LSE enforce their rules and save me filtering you
APR

@Boom In case anyone was in any doubt I corrected you on a number of points including the FACT that Gordon McCrae is NOT a Board member AND I pointed you to the Oct-22 presentation so you could check your facts ... and yet you still insist on stating things that are incorrect despite responses to the contrary.

I like to give posters the benefit of the doubt but posting blatant mistruths is reportable
ATB APR