Strategic Briefing

The Case for Phased Direct CIP
First Gold, Fastest Cash

In a $4,300/oz market, theoretical optimization yields to speed. We present the data-driven case for a phased Direct CIP → RIP → Flotation development pathway.

GOLD PRICE FORECAST

1. The New Calculus

High gold prices fundamentally alter project economics. The opportunity cost of delaying production to build a "perfect" flotation plant is now prohibitively high.

Legacy Thinking

"What is the perfect flowsheet for maximum recovery?"

  • Requires massive initial CAPEX
  • Long engineering lead times
  • High dilution risk

Current Reality ($4,300/oz)

"What is the fastest path to internal capital generation?"

  • Speed: Market rewards cash flow velocity.
  • Margin: Even modest recovery is wildly profitable.
  • Optionality: Preserve the right to optimize later.

Capital Pathway Simulation

Illustrative Cumulative Cash Position

Note the "Valley of Death" in the Traditional approach vs. the early lift of the Phased approach.

2. The Strategic Roadmap

A modular evolution, not a replacement strategy. Explore each phase to understand how infrastructure is repurposed and value is accreted.

Phase 1: Direct CIP

Objective: Fastest Route to First Gold

Build a standard Carbon-in-Pulp (CIP) circuit immediately. While not the long-term optimal recovery method for this specific ore body, it offers the lowest barrier to entry.

Why Now?

  • ✓ Lowest Initial CAPEX
  • ✓ No flotation cells required
  • ✓ No concentrate handling
  • ✓ Minimal engineering lead time

Process Configuration

Feed
Tailings
Leach
CIP Tanks
Active
Product
Gold Doré
Strategic Insight: Even at 45-55% recovery, the margin at $4,300/oz funds the entire operation and future upgrades. We are prioritizing net cash flow over recovery percentage in year one.

Phase 2: Upgrade to RIP

Objective: Funding the Solution

Use internal cash flow to transition from Carbon to Resin-in-Pulp (RIP). This addresses specific metallurgical challenges (like preg-robbing) inherent in the ore body without requiring a full plant rebuild.

Key Advantages

  • ✓ Self-funded via Phase 1 cash
  • ✓ Mitigates preg-robbing losses
  • ✓ Uses existing tankage
  • ✓ Increases recovery & revenue

Infrastructure Evolution

Feed
Tailings
Converted
CIP Tanks
Adsorption
Resin (RIP)
New
Infrastructure Reuse: The leach tanks, agitation, cyanide handling, pH control, and detox systems from Phase 1 remain. Only the adsorption medium changes. This is capital efficiency in action.

Phase 3: Full Flotation

Objective: Long-Term Optimization

Deploy accumulated capital to build the flotation circuit upstream. This reduces mass to the leach circuit and maximizes recovery to the 80-85% range, cementing the project as a long-life, high-margin operation.

Final State

  • ✓ Structural mass-reduction
  • ✓ Minimal cyanide footprint
  • ✓ Maximize NPV
  • ✓ Funded by operations, not debt

Full Circuit Integration

Upstream
Flotation
New
Mass Reduction
Concentrate
Leach
CIL/RIP
(Repurposed)
Anti-Fragility: By Phase 3, the project has already paid back its initial capital. Flotation becomes a pure value-add optimization, rather than a risky requirement for startup survival.

3. The Cash-Printing Machine

Why "suboptimal" recovery is exceptionally profitable. Use the sliders below to stress-test the model against different market conditions. Even at conservative estimates, the margins are enormous.

⚙ Input Parameters

$2,000 $4,300 $5,000
1.0 g/t 3.0 g/t 6.0 g/t
Value of 1 g/t Recovered
$138.25

Revenue Potential per Tonne

Comparing Suboptimal CIP (45-55%) vs Optimized Flotation

4. Strategic De-risking

⚡

Speed to Market

CIP requires no UFG mills or complex resin systems initially. We bypass the long engineering lead times of flotation.

🛡️

Metallurgical Insight

Generates real operating data early. Provides real-world preg-robbing diagnostics and allows resin testing before committing capital.

💰

Investor Psychology

Aligns with market demand for short payback periods and optionality. Creates a clear narrative arc of value accretion.

📉

Downside Protection

If gold prices fall, the low-CAPEX CIP plant is already paid off. We avoid being trapped in a high-debt flotation build.