Member Info for Cornishknocker

You are talking 100% project level debt finance?

I would interpret that as: -

1. Free carried - Ozaltin are liable for 100% of development costs.

2. Non dilutive - Any future raising will maintain Aruanna and Procceas 23.5% shareholding - any future shares issued will have an proportional number issued to AAU and Proccea.

Its now getting very easy to lose track of what we own here (And what we've sold!)

1. Red Rabbit JV (Zenit 50:50 Ownership with Proccea Construction), which includes Kiziltepe (Combined with Kepez) and Tavsan. At the end of Q1 There were just over 2MT @2.51g/T Au and 43.49g/T Ag of M&I resources at Kiziltepe and Kepez, which will have been depleted by about 275kT this year. At present prices this returns approx $30 million per year profit to Zenit. There is another 1.0MT of inferred resource. Tavsan has a total (M, Ind & inf) resource of 4.5MT@1.75g/t Au and 5.01g/t Ag. It is planned that Tavsan will produce 30,000 oz Au per Annum. (at todays prices this will return profit of about $40 Million per year to Zenit. Therefore the current project has the ability to return $70 million per year to its owners ($35 million to AAU in the current setup, reducing to $16.5 Million in the new setup) that said the period that the two projects will operate together is limited as Kilziltepe is depleting.

2. Kizilcukur and Ivrindi (both sold into the JV today), Ivrindi is poorly explored at present and Kizilcukur has a resource of 256kT@ 2.57g/t Au and 75g/t Ag, so is pretty small at present - so I would say selling into the JV presumably at 3 x the exploration cost is a good way of AAU banking a return on the investment to date while maintaining significant exposure to future profits.

3. Salinbas - This is the largest of the Turkish Projects which will return approx $50 million dollars per year to the owners over the life of the mine. For AAU it is firstly selling 23.5% to Proccea for $5.75million dollars and 53% of salinbas along with 53% of its shareholding in Zenit for $35.75 Million, plus will be free carried on the development of Salinbas.

So as I see it, AAU has sold the majority of its assets in Turkey for about $44 Million, while retaining 23.5% of future profits, which is likely to return approximately $30-40 Million per year to the company.

Hydrogen you mean?

No the copper price would not plummet, hydrogen is extracted by boiling water to separate the hydrogen and oxygen molecules, so if we all have hydrogen generators we still need larger cables. Further to that electric vehicles aren't the sole driver for increased electricity demand. Finally we would be unable to mine enough copper to upgrade the networks to enable every home to have it's own charger in any instance.

Thats a good update, nothing unexpected from the quarter but the upgrade to 500kTPA is the good bit. At 2g/t that gives an annual gold production of of over 30,000 Oz (95% recovery) and SIlver of approx 390,000 Oz, for an annual revenue of $65 Million at todays prices. At a cash cost of production of $600 (Allowing for the lower grade mining and processing) would give an annual profit of $48 Million, so even with our reduced holding AAU is likely to see large cash inflows continue from Kiziltepe.

Actually you're wrong,its not some stuff in a hole, it's a lot of stuff in the ground, once it's out of the ground there will be a hole left behind! ;-)

I'm still wondering on Osisko gold royalties who are the cornerstone shareholder of Cornish Metals.

I think this year has been an abject lesson in the folly of sticking all of ones eggs into the tourist basket. And who the hell visits pool, united downs or kelly Bray anyway?

You mean this one: - https://tungstenwest.com

Yes, as I believe what we have drilled so far is only 10-15% of the resource. It's been a belief of mine for 20 years that the minerals found to date in Cornwall have largely been found by chance and a concerted exploration campaign would find lots of minerals that have never been found, the drilling from Strategic Minerals, Cornish Metals and others is proving that.

We havent even got to the western end of the deposit yet or anywhere near the bottom of it, this is probably a $10 - 15 Billion project

The value of that little lot today is Us$2.3 Billion.

From last years scoping study update, theglobal mining schedule (I.e. mined blocks NOT in situ resource) is for 7.1MT@ 0.58% Wo3, 0.1%Sn & 0.38% Cu, giving 41,180 T Wo3, 7,100T Sn and 26,980T Cu.

Latest from Cornish metals at united downs (Redruth) today: - 6.91m @0.81% Cu; 14.69m @ 8.45%Cu & 1.19% Sn; 2.45m@ 0.9%Sn; 1.6m @ 0.98%Sn; 4.04m @ 4.44% Cu & 1.06% Sn; 2.94m @ 0.95% Sn and 1.88m @ 0.9% Sn. They are very significant numbers and will keep increasing the interest in Cornwall which will put Redmoor on the radar.

So if you wanted to use your method as a ball park estimate, you would need to use total material moved or (ore mined x (strip ratio + 1)) as opposed to ore mined.

The first thing is the cost of production is not purely the cost of mining ore. The biggest factor you're not pricing in is the strip ratio, at Kiziltepe they are not only mining the ore, as it's a vein deposit,a lot of material that is not ore is having to be "mined" the last quarter that was about 1.1 million tonnes (about 13 times the amount of ore, so a strip ratio of 13:1). A massive sulphide deposit has a much lower strip ratio.

On what rationale would that be? The company owns half of a gold mine that would have made an gross profit of around $7 million in the last quarter.

With the quarters average prices the revenue for the quarter should be about $11.3 Million, which is comparable to last year when the head grade was nearly twice what it is now.

Well you cant knock that, 10% increase in gold produced despite the expected fall in grade, barring an incredibly poor 4th quarter, the annual production guidance looks set to be knocked out of the park. I'm glad to see the plant expansion on the cards, its desperately needed, with the plant running that far over designed capacity and aging, plant availability is likely to drop in the future, which really needs to be avoided with the falling head grade.