JMHO...
Why did I buy NIS-v?
Share Structure: (Positive)
Name New Island Resources Inc.
Symbol NIS-v
Price $0.150 05-Mar-08 5:30 PM
Shares Out 47.2 million
Inside 9.5 million (20.0%)
Public 37.8 million (80.0%)
Mkt Value $7.1 million (very low IMO)
GOLD Production at Pince Cove to start THIS MONTH:
Pine Cove:
- probable reserves 2,332,676 t @ 2.76 g/t Au = 207,000 oz Au
- JV'd to ANX-v leaving NIS-v with 35% ownership during production
- ANX-v to get 100% of all project cash flow until capital payback
- ANX-v started mine site construction July 2007. Construction
delayed but PRODUCTION expected to begin by end of March 2008
- mill commissioning ongoing as we speak
Some numbers re: Pine Cove: (my calculations, feel free to comment)
- mill production estimated @ 500 t/day
Au Production:
- 500 t/day @ 2.76 g/t Au = 1380 g Au/day
- 1380 g Au/day x 0.0353 g/oz = 48.7 oz Au/day = ~1460 oz Au/month
- 1460 oz Au/month
- Revenue = 1460 oz Au x $950/oz Au = $1,387,000
Costs: (as per Anaconda Technical Report re: Pine Cove)
Total Operating Costs = $20.41/t ore + $1.50 oz Au
- 500 t ore/day = 182,500 t ore /year = 15,208 t/month
- 15,208 t/month @ $20.41/t = $310,402 production cost/month
- $310,402 + $1.50/oz x 1,460 oz = $312,592
Therefore... monthly...
Revenue = $1,387,000
Operating Costs = $312,592
Net = $1,074,408/month
Total Capital Costs = $12,600,000
Payback ~11.7 MONTHS!?
NIS-v profit post-payback = 35% of $1,074,408 = $376,000/month!?
Even with 25% increase in operating costs project would still
reach payback in ~12.6 months and net NIS-v ~350k/month.
March 3, 2008 pictures...
http://www.anacondamining.com/phpAlb...
ANX-v Technical Report, March 18, 2005:
http://www.anacondamining.com/report...
(FYI... break even gold price = $355!)
"Anaconda Mining believes there is excellent potential to find and
process additional gold resources from the Pine Cove project and
other satellite deposits in the area."
"Once in production, Anaconda Mining plans to aggressively explore
zones of gold mineralization on its property and other deposits
located within trucking distance of the Pine Cove plant."
