Member Info for Dofmeister

I don't know what the capacity of the CIL plant will be at Teren Sai, but they are suggesting annual output of 65,000 oz -see the website.

Bald E, no there will be an upgrade to the current plant at Seki to 1M tpa and further 1M tpa plant constructed at Seki to take it to 2M tpa. A further CIL plant is proposed at Teren Sai. I am prepared to put my house on it, but the wife is included.

"With the introduction of more specialised drilling rigs in 2021, the Company is also targeting a lower level of dilution of extracted ore which should result in a noticeable improvement of grades in Q2 2021". They issued that statement half way thru Q2, so one would expect they have prior knowledge........

Yep, all those waiting to get in better do so !!

Bald E, yes thats how I see it. There are two more plants planned, a further one at Seki and one at Teren

They are now funding the expansion to 850 ktpa out of cash flow. Why would you drive the decline down at huge expense, which they are doing, and not process ore thats grading 2 g/t and very profitable at an AISC of c $1,000 p/oz ?

Bald E, have have confused yourself. Initial funding of c $50m is to achieve 1 mtpa at Seki. They have raised c $30m of that. A further $15.7m of capex is earmarked for the next 2 years . Further funding will be required to get to 2 mtpa by building a second 1 mtpa at Seki. Forget Teren Sai, they haven't issued guidance on the plant there, other than to say its planned to produce 65,000 oz pa, its still being drilled to establish the resource.

Bald E, if you look at the 2019 AR it has the same diagram of the mine layout as the 2020 AR, but with the indication of grades for each ore zone, increasing with depth. You can see what they are currently mining from the 2020 AR. Just increased my holding to 1.1% of the share capital.

Indo, they have already told us they are mining ore zones 3-8 (2.29 g/t), ore zone 10 (2 g/t) and ore zone 11 (2.29-2.33 g/t) which corresponds with the recovery currently being achieved. We also know that the grades improve with depth.

Indo, if you look at the AR from last year, it shows a diagram illustrating the increase in grades as the mine deepens.

They new equipment should also lead to less dilution and higher grades.

The equipment is fairly standard for a mine of this size, CAT AD30 underground haulers are used throughout the industry.

Cash costs are low at $800 per oz, particularly when viewed against the mined tonnage of 420,000 T. This will also fall as grades and tonnage increase.

Teren Sai has potential to prove up 9m oz of gold which can be delivered at low cost, well worth pursuing.

To be be clear, both stated that the cost of the expansion to 1m TPA included not only the increased plant capacity (previously c $9m ) but also the cost of the declines and machinery and Thomas added that we are moving toward 850.000 TPA in that process.

Yes, that is my understanding from their independent replies

I received replies from both Thomas Gallagher and Rajinder Basra to my enquiry re Capex. The $45m to achieve 1 MT PA is the total cost of getting to both 850,000 and then 1MT, which makes sense if you add up the the monies raised so far and the additional $9m odd to upgrade the plant from 850,000 TPA to 1MTPA.

It's above..........

It's above..........

C.$45m to achieve 150,000 TPA extra must be an error. I have messaged Thomas Gallagher for clarification.

It's only worth spending $50m increasing capacity by an extra 150,000 TPA if they have grades c 3g/t.

If they get 3g/t then at 850.000 TPA the market cap should be north of £250m, c 9 - 10p a share.

5 year old article....

Suspect there's more to it, possible deal with Aries, which EQT would have known is likely for a few weeks now, so possible hold back of Wood and other news.

With prejudice - they can't refile, extra good news.