Member Info for Cornishknocker

No its not $24 million, San Rafaels plant is designed for a throughput of 3800tpd, ours is being designed for 1850tpd, which is why I am estimating $15 million.

Like every mine there is a need for sustaining capital, which is likely to be in the region of $300 million over the next 20 years. But the idea is to get to a point where the capital is provided by operating cashflows, which should occur in q4 this year.

The economics were different there, for us the payback period is about 18 - 24 months which is still respectable

I am anticipating between now and September we will spend around $5 million on it, with tge remainder over the following 6 months

No its going to cost around $15 million. You don't write a cheque for an ore sorter and it turns up, you plug it in and turn it on.

It's ultimately a major EPC contract, with either milestones or monthly valuations, which in rge main will be funded from operating cashflows, but there is a gap that needs plugging.

Yes and tgats why we are going to be short of cash, in terms of cash in the bank we are fine, but we don't have what is needed to bring ore sorting on line for 2022.

Tgats why I believe the way forward is an earn in agreement on little deer, let someone else pay for the next 2 years work on it, by which time we will have large excess cashflow from ming to bring little deer to production in 2025.

No, not at all, little deer and ming mine bear no relation to each other. Ming Mine is an operating mine in tge process of considerable capital upgrades. Due to delays there is a short term cashflow issue, which I am anticipating to be in the region of $5-$10 million. That could be resolved by deferring investment in the ore sorting plant, but tgat would introduce a 12 month delay, as if the civil works aren't started this year, weather will prevent construction u til next year, taking commissioning into 2023.

Little Deer is an abandoned mine, which hasn't been operated in nearly 50 years, it will basically be constructing a new mine.

So inflating the costs, we are looking at a cumulative cashflow profile for the first 5 years of: -

Year -2 - -$21.6 million
Year -1 - -$128.3 Million
Year 1 - -$235.5 million before revenue - -$128.7 million after
Year 2 - -$81 million
Year 3 - +$3.9 million

So to bring LD into production is going to require in the region of $200 million Canadian.

So just looking at the 2011 PEA for LD, we are looking at tge following ($ are Canadian $ and will need to be inflated by approximately 30%): -
Permitting - 12 Months
Year (-2) - $16.6 million capex
Year (-1) - $81.9 million capex; $0.2 million opex
Year 1 - $60.6 million capex; $21.6 million opex; $70.9 million Revenue. Adjusting the revenue for today's prices, that becomes $107 million
Year 2 - $41.1 million capex; $30.3 million opex; $93.5 million revenue (adjusted - $140 million)
Year 3 - $13.9 million capex; $30.8 million opex; $95.9 million revenue (adjusted - $143 million)

Yes that's correct, I try not to be negative or positive in posts, I just try to be realistic.

Just this bit will take at least a year: -

The environmental assessment (“EA”) and permitting process for mining and mineral processing
projects in Newfoundland and Labrador is well-established and is harmonized with the Federal
EA process requirements. The Project would require an environmental assessment with public
consultation under the Environmental Protection Act (SNL 2002 c.E-14.2). Once approved, the
Project would require a Certificate of Approval under s.78 of the Environmental Protection Act,
water rights under the Water Resources Act (SNL2002 c.W-4.01), a mill license, and other
operating permits.

MrExec, no its not, its very much the reality of it, like the reality of making a new discovery and opening a mine is generally in the order of 15 years

One thing, little deer and whalesback are NOT mothballed, they are closed down and abandoned. To bring them back into production is not going to happen overnight, its going to take about 3 years and around $100 million of investment.

Thats what I'd aim for Sam, sell a 25% share of LD/WB for a cash injection, with tge purchaser having an earn in right to 50%, which will enable our team to focus on Ming Mine while the partner gets on with progressing LD/WB. In 18 months we will have excess cashflow to divert to LD/WB with an aim to starting production in 2024/2025.

You may well be right, the total predicted net cash generation (undiscounted revenues after costs) currently stand around $110 million us, over 9 years

Historically South Crofty production pre closure was around 1800 tonne of tin in concentrate annually from around 200000 tonnes of ore. A new operation is likely to be higher, one of the things pre 98 is there was no money to expand equipment (remember the tin price at the time was around $5,000), the ore was processed at Wheal Jane, where the plan now is for crofty to have a new mill on site. There is plenty of hoisting capacity so no issue there.

We don't know if there will be a placing, so if there is how can we know where its coming from?

Agreed, there is no funding actually required for at least 3 months.

I get what you're saying Bertie and on one hand I would agree with you, it would be great to have 2 wholly owned mines, but realistically when are we going to be able to fund it? I can't see us having any free funds to invest on little deer for the next 2 years,so if we can effectively plug a short term funding gap and get someone else to carry forward a 2 year work programme at LD, tgats a double win to me.

Is one of the most capital intensive industries on earth, with big risks and big rewards. Some people here clearly failed to realise that before investing in mining companies. My advice would be "if you cant stomach the risk, put your money elsewhere"