Member Info for ID78

1 in 5 holes a dud. The others weren't good. They were exceptional.

Running out of straws to clutch at?

I think pads 4 to 7 can be extended from 120m to 170m - so 40% more ore if extended.

All in all it leaves me comfortable about GRL.

I’ll be even more comfortable if they achieve 1g/t

I agree, BBN - when I started posting here I kept saying 2 routes to 1000oz

- 7 HL pads (when they only had 3 or 4 before). I believe pad 5 is now in use, I don’t think there’s been a lift yet from pad 5.

- higher gold grade.

The only thing is that to use pads 6 and 7 Emma said about a new dry circuit being commissioned so there a bit more to it. It’s not a big cost (as opposed to the method for refining the 6g/t needing modular plant at $5mill). It’s more it will take time and not cost.

Nevertheless both opportunities (better grade and more pads) make it a comfortable place to be and we just need a to wait.

Again- I think the pads 4, 5, 6, 7 can be expanded and made bigger so even more scope for leaching more gold.

So to summarise. I think 1000oz is nailed on in time. And if we get a good gold grade and more HL then 1500+ oz is a good possibility.

1500oz x ($3000-$1500) =$2.25mill profit a month or $27mill a year ..

Good to have BB onboard, some great posts. HarChris too.

I don’t know how long it will take for the improved grade from Pit 1 to filter through, but my estimate is 3 months from stacking.

So if they re-entered pit 1 in January the gold pour starts to be poured March/Aprol and reported in April/May

Chances are the Feb pour is pit 2 grades...

I more meant the RNSd updates don’t mention the AISC.

I do think the corner had turned and this is priced for failure making it a great opportunity

Hey CLSKbull - I have my suspicions when AISC is not reported. If the AISC is favourable companies state it. When it isn’t they don’t report it.

Emma did suggest costs had gone up post COVID but were returning to more sensible levels but as you say the AISC drops with the increased amount of gold being produced (better grade). She seemed keen to talk about how costs were coming down and about the 1000oz target so hopefully they will start to report AISC soon.

Typically for this type of operation an AISC around $1200/oz or lower should be expected. I’d assumed $1500 to try and be conservative.

One other thing, since you’ve woken up to gold; have you considered silver? In the past when gold takes off silver lags behind but then follows. And with a greater rise…food for thought

Or another way to look at it is the debt reduction has been priced in (£2.8mill debt reduction with an increase in MCAP of £2.5mill). Everything else isn’t priced in

- higher POG

- increased gold pours

- risk reduction

I think to some degree this is flying under the radar.. but I also think that some are waiting to see the gold pours increasing further.

Also there have been bumps in the road; the gold theft and then the risk of default and losing the assets. This could be making investors nervous but fundamentally the gold pours will make all the difference here in time.

Then a step further including the debt it suggests the company is valued at less than £15mill by the current SP.

Nuts

So the debt was $10mill and reduced to $6mill.

$4mill debt written off for 16% dilution (of a £10mill MCAP company)…

$6mill dollars debt as a gold loan: if we assume a POG of $2500 then that is 2400 ounces. Or 240 ounces a month between now and the end of the year to clear all the debt. This is achievable but unlikely to happen (I think). Given the deal done to wipe $4mill for less than £2mill shares I’d agree that a deal will be done. Especially with the way the company is positioned to grow.

Either way the debt is not worrying. Thanks gold geezer and bbn..

Good stuff big bite…only I don’t have X so I can see some of the info. I’ll admit I don’t really have a handle on the debt; how much is it in total and what is it costing to service the debt?

Thanks in advance

It is better to underpromise and over deliver than the opposite and perhaps she has learnt this.

Reading your posts it is clear you have an issue with Emma but I have definitely seen worse on Aim. Far worse. The gold pours over the next few months are key to establishing a solid foundation on which they can build and I’ll judge Emma and her team from this.

Some really great posts today… to add to HarChris’s posts and to illustrate what was being said about the POG underpinning the company.

Assuming a (probably) high AISC of $1500/oz and a gold price of $2500/oz then assuming we don’t get more gold from pad 5 being commissioned… or more gold from the grade improving by returning to pit 1. In other words assuming they just stand still and don’t improve the gold pour at all then the profit is:

450oz x $1000 = $450,000 per month or $5.4mill profit a year

Now to labour the point the price of gold is our friend.

Assuming the POG is $3000/oz

450oz x $1500 = $675,000 a month or $8.1mill a year profit.

So this gives the the team no credit for the increased gold pour month on month and assumes the gold production will now stagnate. By doing so we fail to take into consideration Emma’s confident discussion of hitting 1000oz. And this also fails to consider the increase in grade will (from what we predict to be the current low grades in pit 2) when they start to mine pit 1

So being pretty conservative they are still churning quite a bit of profit every month.

Then if we consider the things that could flip this on its head; the gold grade increasing and in doing so them getting close to 1000oz - well you can double the profit stated above to $10.8 or $16.2mill a year

Then considering in the medium term pits 6 and 7 being commissioned and increasing the gold pours. Then more long term the tantalising higher grade ore at 6g/t.

The SP is undervalued now, and there are significant medium and long term growth drivers to look forward to. This is a bit of a belter. As big bite said patience is needed.

One more thing re-entering pit 1 (did they say that was in January) - it could take 3 months for that higher grade gold to be leached, collected and then poured. So that could appear in the May gold pour?… If the next couple of months show them company to be standing still then so be it. Patience is key.

Doesn’t work for me but then I don’t have Twitter (x)

What’s the post?

So she still believes they will get to 1000oz without pads 6 and 7.

Pads 6 and 7are 120m but can be extended to 170m (to give almost the same capacity of 3 of the current pads.

To use pads 6and 7 they need commissioned and a second dry plant commissioned.

So IF they do the 1000oz with pads 1 to 5 they should do maybe 1500 to 1600oz with pads 6 and 7 and a second dry plant….

*500oz rather not 509

Is she not talking about last months record pour of just over 509oz (522oz?…)

Quite right, good geezer

16/1/25 - started drilling

18/2/25 - drilling complete (9 holes in 4.5 weeks)

26/2/25 - results of hole 1

I’d be hopeful of more assay results by the end of next week…

I’m no geologist, so your post (Kilcona) led to me asking ChatGPT about high and low sulfidation epithermal deposits and about porphyry copper gold deposits.

The type of system we have is certainly very encouraging.

Thanks for posting

Has it? Don’t see an RNS…