BCN – Beacon Minerals To Process 500,000 Tonnes Per Year Of Ore

“the ongoing process at the companies Jaurdi project for full production is on track and expected in Q4 2019.”

Managing Director, Graham McGarr

Production is expected to process 500,000 tonnes per year of ore. The Company also revealed that it has completed the installation of a 6Mw power generation station. The 6Mw seems a little large for a 500k processing operation. Although this is not uncommon for companies in Australia to have power generation over capacity as it seems that the way in which the electrical engineers devise the power load they always assume the complete plant is going to be turned on at the one time. However in reality the components are turned on one at a time and thus not requiring the over the top electrical supply. The company has also announced that the water supply has been established with three bores to supply the processing plant via a dam facility being fed form the bore field. Beacon announced on June 20th that the commissioning of the Gold processing plant had commenced.

Beacon expects to process 2.5million tonnes @ 1.9g/t Gold over a 5 year period at a process rate of 500,000 tonnes per year to deliver 126,000 ounces of Gold over the period. Pre Production costs were estimated at $21.4m and a pre production payback rate of 11 months Total operating forecast over the 5 years is estimated to provide $98.4m based on a gold price of $US1650.00 per ounce. However it seems that the revenue and operating surplus will increase with the Gold price currently around the $US2,000. The company also has also carried forward losses of $17M up to June 2017. Share price has been hovering around 3 to 3.5c.

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