Yes quite interesting the issue of mill capacity as I also thought it referred to tons per day , not per shift.The estimate of 15 to 25 people at mill operation based on a few other companies I have seen actually sounds about right especially if they are at 700 tons.The other issue is how many days per year do they expect to be mining ,and milling, and effect of repairs and maintenance. I saw one operation a bit higher than 700 tons forecast only 253 days of producing operations as (a) they found it uneconomic to run three shifts per day mining (b) down time for maintenance and repairs.
If they ship to smelter usually smelters prefer a contractual arrangement, and pay X% on arrival, then balance in 30 and 60 days with as you indicate back and forth about assay results. The smaller the shipments the less leverage on terms. Then they pay X% of spot price (generally). That is what caught my eye in their projection of 95% recovery, and why I ask how they will ship and get paid. I admit I havent reviewed whether there are any penalty elements ( I assume not) that would cause further deductions. I admit I dont know what their final product is,nor the mining method.Also since no details released on the $9 million in orders, how does CGFI pay those clients ?
Eeven if they dont have reserves, if they are estimating an average grade of .5 what is that based on ? former production records ? sampling ? what is the mining width ?
Since company indicates they have prepared internally reports based on NI43-101 guidelines ( though one has to ask why not just SME guidelines), they will have all this sort of information at their fingertips. I certainly hope their projection accounted for CAPEX and working capital requirements and they meet their fall 2013 projection - will make a lot of happy sharehodlers to be sure !
