100M Shares + 36M 31/12/2007 20c options
Fully Diluted mkt Cap
@20c = $27M
Conventional methods have been used in the past to treat Gold Sulphide deposits resulting in large tailings dumps full of "waste" that get slowly oxidised producing sulphuric acid which leak into the ground causing environmental problems.
But this tailings "waste" is often quite rich in Gold!
EVG licenses the Albion Process from XStrata. This produces no sulphur dioxode, remnant metals are left in a safe state, no acids left at the end of the process. This is win win for the economy, environment and governments.
Rapidly build up land bank of low cost projects each with min 15 years life
Grow the business on internally generated cash flows to minimise share dilution.
Dominican Republic - Las Lagunas
EVG holds 70% interest and management rights for the Las Lagunas Gold Tailings project in a significant mineralisation belt host to +15M ounce Pueblo Viejo deposit.
Las lagunas has a Indicated JORC 5,137,000t @ 3.74g/t Gold 38.62g/t Silver
These are tailings containing 621,000 ounces Gold and 6,380,000 ounces of silver. (worth AUD$620M at current prices)(recovery rates ~70% so value ~AUD $400M)
700 tonnes of Pueblo Viejo ore already tested through the Albion process.
BFS done! Environmental and construction licenses issued. Plant construction to start 3Q 2007!
project life = 6.5 yrs
operating cost = US$237/ounce
estimated AFTER TAX annual profit = AUD $9.7M
POTENTIAL Currently negotiating with 2 Canadian firms who are active in the region who could provide high grade ore to substantially extend the life of the project. There are numerous small concession holders within 20km of the site that may find their deposits uneconomical due to start up barriers.
Peru - Trujilo - MOU with San Manuel Corp
Signed a memorandum of understanding to establish a jointly owned process plant in Trujilo for recovery of Gold and Silver from tailings deposits and high grade suphide concentrates (up to 100g/t) from nearby mines in Peru.
The intent is to create a centralised Albion processing plant surrounded by mines owned or controlled by San Manuel or third parties and historic tailing deposits.
Plant construction will be in 2 stages. Each stage will provide capacity to produce 50,000 ounces per year.
Due to the anticipated high grades, plant size, cost and operating costs are expected to be significantly lower than in the Las Lagunas project.
Preliminary Feasibility Study started to more accurately establish quantities and grades of concentrates and tailings available to the plant.
EVG Expects to finance its estimated total equity contribution of US$10M for the two stages from cashflow generated at Las Lagunas.
With lower costs and larger production, annual profit for EVG after tax could be AUD$15M?
from 24 May ann:
- Envirogold is also reviewing the prospect of reprocessing other high grade deposits in Peru, where there is possibility of treating refactory ore from existing mining operations.
- The company is negotiating with relevant Government authorities to evaluate a number of toxic gold tailings deposits from old mine workings to establish viability of treatment.
- Peruvian authorities have recorded over 800 toxic sites from historic mining operations.
- Peru produced over 200 tonnes (7M ounces) of gold in 2005 primary from high grade sulphuric ore.
from 24 May ann
- EVG hold exclusive rights to the Albion Process on tailings projects identified in the next 2 years in the five main gold producing provinces of China.
- Negotiations have commenced with the appropriate authorities in the Province of Shandong to treat numerous state owned sulphuric tailing deposits together with concentrate from small mine workings.
- China produced 220 tonnes of Gold in 2005 (7.8M ounces)
Very tightly held. Just try to find a seller today!
Top 20 shareholder hold 60%
Executive Chairman holds 8M shares, 40M Dec 2009 options
I have been watching this one for about 6 months now. Been accumulating whenever i have spare cash, hoping it stayed cheap so i could buy more.. but its all started happening recently. Hitting 20c today!
Maybe someone can post a chart?