Member Info for Cornishknocker

Its a straight line, so its easy to extrapolate

That was a nice little picture from cirnish metals of the Cuprite, in itself its pretty much only of geological and mineralogical significance - the St Day area has probably some of the most amazing secondary copper mineralisation found anywhere in the world, some of them like Liroconite is literally unique to the area and fetches big money from specimen collectors.

The significance of it to CUSN is it comes from tge sulphide mineralisation in tge area.

At the end if the day everyone has their own reasons for investing and their own financial situation and their own strategies. Its not for anyone else to criticise their decisions.

That was to some crazy hypothetical grades - forget it

One you may be interested in ST is our new chief engineer left his job as chief engineer with Kirkland to come join us.

In terms of communication from the company, I personally think its a case of the company letting quarterly updates of the actual situation rather than publishing lots of forward looking statements. Another week and we will know what the situation at the mine was a month ago.

Fire ant, I'm not going to disagree with you on your comments there, that is the current recorded situation.

The hedge is for 3600t@ $7,700 per tonne, which is approximately 50% of this years production. As a result for my calculations this year I use (spot price + hedge price)/2 = price received. That assumes that the offtaker is only taking half what we deliver at hedge price. We could be delivering it all at hedge price, which means we revert to spot price in around July.

St Tropez, just checked the revenue, if we hit top of guidance its now $67 million this year.

One thing to factor in is that during a mining boom in Canada there is likely to be significant upward pressure on wages to attract people into the industry, which will see costs increase.

I think we are sending in the region of 80-100 tonnes of concentrate to the port per day,so it will take between 60 and 90 days to deliver a shipliad to the port. Its about 60 days since the last shipment left, so it could be anytime.

However, as I discovered last week, its not that important as our agreement with transamine is they pay 90% of the copper value on delivery to the port, which helps a lot with cashflow.

If we deliver 90 tonnes to tge port today, our concentrate grade is 25% Cu, if we call todays copper price $9500 and our hedge price $7700, we will recieve 90% the average of that which is $8600/t

25% of 90 is 22.5 tonnes of copper x90%
So today we would recieve us$175000.

Exactly that

Normally the first thing you would be looking at with grades like the us what is called "the nugget effect). Which is effectively the diamond core going through a nugget, which will obvious give you a very high gold value and that may explain it here BUT there are multiple high grade intercepts that make that less likely

The mine rota is 2 x 10 hour shifts, 4 shifts working a 14 day on 7 day off rota.

The development contractors have been in for nearly 4 months.

Rambler is advertising for production miners, which means the stopes are nearly ready for production. The transverse crosscuts and slot raises are the last job before the production miners can start stoping

The mine is working on a 2 x10hour shift per day rota, by now the development miners will be driving the stope transverse crosscuts.

These are 4m wide x 4.5m high, in the orebody. They will be aiming for 3.5 -4m advance per shift and should be working on 2 crosscuts per shift. Tge ore sg is about 2.8.

So that gives a ore production from development of: -

2 x 3.75 x 4 x 4.5 x 2.8 x 2 = 375 tonnes per development team shift

Or (9400+7700)/2 x 20 x 90% = $153,000 = todays daily revenue.. ..

Yes I did, as you'll see i took the average of the hedge price and the spot price

Don't get to wrapped up in the 3 month average production, there will currently be a lot of ore coming from development rather than production. And as those stopes come into production in the next quarter, the mine will hit full production quite quickly. At the moment I expect it to be over 1000tpd.

That bottom figure is Canadian dollars.

For people wandering about cashflows and production, here is a bit of analysis of last years production figures, guiding to what we can expect un a couple of weeks.

Q3 production was 54000 tonnes or 600tpd average. We can take that as the low point.

In q4 production increased to 61,000 tonnes (680 tpd), so by the end of q4 production was likely at 750tpd.

It is likely that q1 production has averaged 825tpd - 75,000 tonnes and the grade which was improving is likely to be around 1.75%

Mill performance is 95% recovery.

Therefore I estimate q1 production is going to be around: -

75,000 x 1.75% x 95% = 1247t of copper

We get paid 90% on delivery to tge warehouse, half of production is hedged at $7700 and the other half we get paid spot price, so the quarter is likely to have averaged $8300, which means tge company would have recieved $10,350,000 US from operations or $13,000,000 Canadian.

There would gave been a settlement figure from the months shipment for the additional 10% and tge gold and silver credits, for this quarter this will be a large sum - possibly around $5 million us - this is because most of the copper on February's shipment was delivered to the port when copper was around $7200, so the company would only have recieved $6500 for the 1500t in the forward payment, so there would be an additional $3 million to make up the difference, plus tge silver and gold credits. From this there would be deductions for the shipping, treatment and interest on the forward payments.

So altogether we would recieve $15,350,000 us, from that we would be paying out: -

Treatment charges - $250,000
Shipping - $200,000
Interest - $120,000

So total income would be $14,830,000 us or $18.5 million Canadian.

If we assume the mine averaged 150 employees during the quarter and the average mine wage us $75,000 Canadian per year, then the wage bill will be around $2,800,000 for the quarter and we say tfat wages were a third of operating costs for the quarter tgat means the operating costs for the quarterwere $8.5 million Canadian.

All in that means tge company us likely to see a $10 million positive cashflow from operations for the quarter.