Member Info for aprogerson

@Suggins LOL, I've given up now as every time we get news on HL configuration, pad size or cook cycle it then changes! On the plus side we now KNOW that Plant 3 = 3x 7.5kt = 22.5kt and Plant 4 = one or more 65kt. As RMc confirmed that GCAT mining capacity will rise to 90ktpm to feed plants 1, 2, 3 and 4 ... so some simple maths implies that mined ore to feed plants is:
> Plant 1&2 = 30ktpm once upgraded in Q1'23
> Plant 3 = 22.5kt as confirmed as completed
> Plant 4 = 90 -30 -22.5 = 37.5ktpm

Plant 4 scenarios assuming 37.5kt ore is available:
1) build 1x 65kt pad = 65ktpm nominal capacity so 6-week cook cycle
2) build 2x 65kt pads = 130ktpm nominal capacity so 3-month cook cycle
Just my thoughts
ATB APR

Mining Lease Awarded for the Kolosori Nickel Project



Gunsynd Plc (AIM: GUN, AQSE: GUN) notes the announcement by its investee company Pacific Nickel Mines Limited ("Pacific Nickel"), which is listed on ASX (ASX: PNM), that it has been awarded a Mining Lease for the Kolosori Nickel Project on Isabel Island in the Solomon Islands.

Pacific Nickel has also entered into a Surface Access Rights Agreement with landowners and a Mining Agreement with the Government of the Solomon Islands.

Pacific Nickel further states that its operations are now focussed on finalisation of its Definitive Feasibility Study and that it will seek to expedite the wharf and haul road construction, together with the establishment of a construction camp in order to increase production during 2023.

Something strange is happening with Gold and silver prices in that POG is under pressure and now likely to break down to $1,680 as DXY bounces up HOWEVER silver looks to be breaking UP after a 6% rise over the last few days.

IMHO what is happening is physical silver is being drained from COMEX and LMBA as SLV is being liquidated for physical delivery which in turn will bizarrely drive down silver price, but it is rising! Commercial banks are now net long and CTAs net short silver which implies a HUGE silver squeeze maybe on the cards into Sept-22 contracts which are deliverable ... IF this happens then we may see POG reverse up despite what DXY may be doing.

Lots of if and buts, but this is far from normal given the HUGE PPI & CPI prints plus the mind-numbingly large CB inflationary money printing that is ongoing and seems to be accelerating into massive energy short squeeze coming into a cold European winter. Buckle up
ATB APR

@Gino Yes I am very well aware of DL from prior investments in Rare Earth Minerals and UKOG, but what most people are NOT aware of is that DL has been heavily involved in Aussie miners for some years especially in Paterson region around Telfer and was a fan of Rincon since early days when it was acquired by Artemis Resources which fell through and Gunsynd got involved

IMHO no one likes dilution but after the recent EIS hole "miss" they had to do something and getting a well-connected and motivated CEO such as DL and adding $1.2m new funds is a damn good start considering we already have a comprehensive drilling programme underway.

RCR have also acquired a new tenement north of and abutting Westin for $100k plus a 0.5% NSR which seems good value
ATB APR

David Lenigras is a bit of a marmite character but knows the area well so I think is a good appointment to help promote them.
Rincon have also just announced a $1.2m Capital raise & GUN have added $100k as part of fundraise so should be well received
ATB APR

@121 Yes but think what it will do for JV Business case, share price and project economics going forward
ATB APR

I think the 2 buys are in response to DXY reversing down and Gold/silver rising strongly over last 4-5 sessions

Guys the reality is that GCAT is currently an explorer/developer with a small mine attached that is producing enough revenue to fund it all ... this is a FANTASTIC position to be in.

We also know that from KIlimapesa revenue that GCAT is:
> transforming into a proper junior producer with 24koz production @low $1,100-$1,200 AISC within the next 4-6 months
> expansion & Infill drilling to expand current MRE

Subject to additional funding that:
> Kilimapesa = scale up to 50koz production
> Nyakafuru = build new 25-50koz production mine

Let's not lose sight of what they have achieved and where they are going with this! Yes there is risk and invest accordingly ... usual caveats (thanks Trek!)
ATB APR

@CHis I just love Andrew McGuire and cannot get enough of his commentary on what is REALLY going on between real physical gold and silver markets and the highly leveraged fake paper markets built on top of what limited physical metal remains
ATB APR

@GTMN Please don't start on about Shark Tooth as I'm fed up relating 2018/19 strategy shift to gold/silver after GWMO went hell-for-leather into Copper resulting in current JORC and awaiting a possible JV partner with deep pockets. Dore bar was a Proof-of-concept and no more than that.

If you are unsure I recommend you read the relevant RNSs
ATB APR

@GTMN Interesting question, but I see 2 clear opportunities for GWMO to AVOID any dilatative cash raise AND raise capital/revenue at the same time as follows:
1) Formalise processing JV to monetise tailings
2) Complete low cost/depth step-out drillings around MJ Hole 4 to confirm strike length +width +depths AND then sign revenue/risk share contract with an operator so no upfront costs to GWMO

Food for thought
ATB APR

@SW Thanks for the link. So looks like plant 3 is 3 pads totalling circa 20kt and plant 4 is 6x 20kt pads assuming first pilot plant was stated as 7,5kt capacity. That would mean that Plant 3 =20kt and Plant 4 =120kt capacity.
ATB APR

Another way of looking at it is 7.62 metre intercept from 4.57 metres @180.94 g/t silver & 0.315 g/t gold at 90:1 silver/gold ratio is 2.3g/t GEO over 7.62m length from just below ground at 4.6m depth.

Understanding strike length and vein widths should now be a No1 priority for GWMO as this is likely a good source of low cost revenue for GWMO when linked to proposed production JV especially if they engage a mining contractor to do the hard work for them.
ATB APR

RNS with very shallow, high-grade silver drill results from Mineral Jackpot

· Hole 4 intercepted a 7.62 metre zone from 4.57 metres in the hole grading at 180.94 g/t silver and 0.315 g/t gold, contained within which is a high-grade silver zone hosted in quartz vein of 3.04 m at 418.00 g/t silver and 0.554 g/t gold, starting at 6.10 meters drilled depth.

BH has stated that a production JV is underway that will help GWMO exploit "Hole 4 provides a near-surface, high-grade target for further exploration and potential low-cost development due to its shallow position."

My observation is that 3m x 418g/t silver & 0.554g/t gold is 5.2g/t Gold Equivalent Ounces (GEOs) in a 3m deep vein only 6m below surface. If GWMO can now move quickly to put some shallow cheap holes in around this then they can quickly establish a very low cost mining operation and get this gold/silver out. I also not that my calculation uses 90:1 silver/gold ration which is historically very high at the moment and tends to compress quickly when POG starts to move; this would mean that if the ratio hit 50:1 which is very realistic then 5.2g/t GEO becomes 8.9g/t GEO

Keenly await drill results from Trafalgar Hill and OMCO mine areas ... we know it is there it is just positively identifying it !
ATB APR

@RP I suspect this is Plant 3 as GCAT said in Q2 operating report that end Q2 that pad #3 was commissioned so reporting 1st lift from that pad makes sense to me, whereas plant 4 is currently scheduled for construction & commissioning in Q4 according to latest Sept-22 presentation.
ATB APR

@RPdard They had 91% stated (I think) in Q1 Ops report for combined Plant 1 and 2 before they disconnected them. I know that they will be making some tweaks and upgrades so adding another 1% to the combined plant efficiency seems a reasonable assumption to make.

In the new Sept-22 presentation the main substantive changes are:
> Kilimapesa upgrading resource now referred to JORC compliant (page 8 & 11) AND includes Red Roy MRE
> Plant 1 upgrades now confirmed as Q1'23 (page 13) as previously stated but seemed coy about
> Plant 3 stated as under construction & to be completed and commissioned during Q3'22
> Plant 4 - Pad 1-4 to be constructed and commissioned during Q4'22
> New Feed Prep - Crushing and Screening plant to feed all 4 processing plants & commissioned in Q4'22
> Underground mining from 2 new Adits to be constructed in Q3 to add capacity

So if plant 4 is to be CONSTRUCTED in Q4 then what are those HUGE HL pads shown in the site photos? Are these super sized Plant 3 HL pads and Plant 4 yet to be added ... intriguing to say the least !
ATB APR

@Itsyou My figures for possible production from Kilimapesa show that approaching 50koz production is possible with fully upgraded Plants 1 & 2 plus new HL Plants 3 & 4 on 3-month HL cook cycle ... the trick will be mining enough of the right grade ore profile to keep it fed!

Updated steady state Scenario for Jul-2023 onwards = 4,020oz/month or 48,240oz/year
Plant 1 & 2 (30ktpm) = 30kt *2.5g/t /31.1 *92% = 2,200oz/month combined crush, mill, grind, gravity, CIL and leach
Plant 3 (4x 5kt pads) = 20kt/3 *1.72/31.1 *70% = 260z/month assuming 3-month HL cook cycle time
Plant 4 (2x 60kt pads) = 120kt/3 *1.72/31.1 *70% = 1,560oz/month assuming 3-month HL cook cycle time

Note 1: Assumes plant 1 & 2 %efficiency 91%>92% after full-refurb & plant upgrades
Note 2: Assumes plant 3 & 4 %efficiency 53.5% on 2-week HL cook cycle to 70% on 3-month HL cook cycle

We have not seen any figures for what their new HL plant is REALLY capable of and if they can compress the cycle time to up the throughput with minimal loss of % recovery ... as every 5% recovery is +/-390oz.
ATB APR

@PR Wow, non-dilatative $5m capital raise linked to future gold purchases at $spot -%discount with $2.5m upfront and 6 month pause on "repayments"

Yes I can see that working assuming the %discount is reasonable as that is effectively the funding costs ... plus leaves GCAT able to capture value of a rising POG albeit at risk of POG dropping!
ATB APR

@Bankrupty & Trek 100% with you both there. I currently hold physical silver where I can get to it easily and I hold my gold underground ... no prizes for guessing where?!

Good point about the certification just in case the SHTF ... thanks B
ATB APR

Looks like DXY has now broken out to they upside as I suggested it might on 23-August BUT I sincerely hope that my prognostication does NOT come true namely ... "I am expecting DXY to hit 110 and possibly 112 not because US$ is strong, but because it has less problems than GBP, JPY or Euro so is RELATIVELY more desirable."

It seems likely that POG will now revisit $1,676, so lets hope it bounces there and puts in a strong double-bottom on the chart.
ATB APR