NPV #2 $1.5 BILLION

NPV Calculation # 2 (includes reasonable potential beyond current inferred)

*Information in this current blog is based on information obtained up to mid 2018 and should be considered legacy at this time and should no longer be relied upon.*

Discounted at 7% = CAD$1.5 Billion
Discounted at 10% = CAD$1.0 Billion
Discount at  39% = Current valuation of company.
Discount at 73% = Breakeven


Tonnage:
CH-6
5 million down to 250 metres (open pit)
5 million from 250 to 500 metres (under ground)

CH-7
6 million down to 250 metres (open pit)

CH-44
3 million down to 250 metres (open pit)

Carat Value  CAD$250 per carat for all pipes (Will be updated after bulk sample)

Grades:
CH-6 - 2.58 cpt
CH-7 - yr 1 - 1.2 cpt, yr 2 - 1.0 cpt, yr 3 and beyond - 0.9 cpt (Domain 5 will be mined out in first year)
CH-44 - 1.0 cpt

Mill target production - 1 million tonnes per year
Operating cost - CAD$75/tonne (open pit) CAD $100/tonne (underground)

Total tonnage - 19.5 million - Mine life - 20 years

Year 1 to 5 - CH-6 open pit
Year 6 -  CH7 high grade
Year 7 - CH7 mid grade
Year 8 to 13 - CH-44  - 500K per year, CH-6 UG - 500K per year
Year 14 to 19 - CH6 ug - 500K per year and CH7  low grade
Year 20 - CH7 low grade

Revenue by year:
1 to 5 - 645M per year
6 - 300M
7 - 250M per year
8 to 13 - 450M
14 to 19 - 435M
20 - 112M (half year)

Operating expense per year:
1 to 7 - $75 million
8 to 19 - $88 million
20 - $37.5 million

$150 million tax loss carry forward
Tax rate 40%
Royalty 2%

Capital cost
1 - $700 million
year 6 - $40 million (ug cost and development)
year 7 - $40 million (ug cost and development)


year 1 = 645 - 700 - 75 = loss 130 million
year 2 = 645-75 = 570 - royalty = 560 million - (tax on 560-150-130*.4 = 112) = $450 million
year 3 = 645 - 75 = $570 x 0.58 = $330 million
year 4 = $330 million
year 5 = $330 million
year 6 = (300 - 75 - 40)*.58 = $107 milllion
year 7 = (250 - 75 - 40)*.58 = $78 million
year 8 to 13 = (450 - 88)*.58 = $210 million per year
year 14 to 19 = (435-88)*.58 = $200 million per year
year 20 = (112-37.5)*.58 = $43 million.
year 21 = clean up cost $25 million

 year 1 - 2020
Exploration, bulk sample costs before then:
2016 15 million
2017 15 million
2018 30 million
2019 30 million