Xie Sipeng and his team have calculated the reserves in the shallow layer of the Qiaonai gold mine, and based on the current gold price, they can still bring them a profit of 3 million US dollars after the mining is completed by the end of next year; they have done very limited work in the exploration of the deep reserves of the Qiaonai gold mine, and the proven reserves are very small, but the theoretical reserves may be up to 10 tons.

Their own expectations for the Jonai gold mine are ten million dollars.

Cao Mo just smiled, saying that he would help them convey this meaning, so he patted his ass and went back to the room to sleep.

Over the past year or so, Cao Mo has hired an exploration company to work with Oyo State College and domestic research institutes to conduct in-depth research on the geological formation of the area north of the Lujiao River, not just the 200 square kilometers of the upper reaches of the Gray Crow River and the Ibogu River.

The results show that the northern part of Lonta and the Oguta mining area located in Benin and the south of Portonovo have relatively good metallogenic geological conditions, which are related to the formation of folded mountains by volcanic magma eruptions in the early years of this area, and there are many gold reserves in the underground folded rock formations, but the mining difficulty is large, the mineral quality is low, and the comprehensive mining and refining cost is relatively high.

However, when the international gold price has been operating below US$400 per ounce for the past two or three decades, the gold deposits here will inevitably not be taken seriously by the international gold mining companies – after all, the planet has unimaginably large gold reserves without considering the cost.

At the beginning of this year, the international gold price broke through $700 an ounce, the highest in two decades, but then it has slipped somewhat.

The vast majority of analysts in the industry, even if they do not think that the international gold price will continue to fall sharply, but no one will think that the international gold price is likely to rise sharply, and the mainstream opinion is that the gold price will fluctuate around $600 per ounce for a long time.

Therefore, those gold mines with a comprehensive mining cost of more than US$600 per ounce are still not worth investing in in the eyes of investors, let alone investing in mining, and will not continue to invest in deeper exploration.

Xie Sipeng: They did not build a refinery, and the comprehensive mining rate was low, and for the same gold mine, the comprehensive mining cost would increase by 20 or 30 percent.

Cao Mo built a refinery in Ibogu, and the mine and factory were completely localized, which could reduce the comprehensive mining cost of deep rock gold to about $500 per ounce, but Xie Sipeng and his team were completely unable to do this.

That is to say, no matter how many deep reserves there are in the Qiaonai gold mine, not to mention that there are only about six or seven tons of reserves in theory, even if there are hundreds of tons of proven reserves, it is of no value to them.

How could Cao Mo possibly pay an extra seven million dollars for this?

In addition, Cao Mo really wants to expand the mining area of the Yibogu gold mine, which currently has only 60 square kilometers of mining area, and the Qiao Nai gold mine is too small, so he might as well concentrate resources on increasing exploration investment in the Oguta mining area, which occupies thousands of square kilometers.

Cao Mo hung Xie Sipeng and them for two days, but Yang Deshan couldn't hold his breath and found an opportunity to catch him and ask him about his decision.

Of course, Yang Deshan knew that Cao Mo was the real controller of the Felician family's gold mining company, and his most important personal investment at the moment was in the Jonai gold mine.

Whether Cao Mo was willing to take over Xie Sipeng and Xu Sheng's equity in the Qiao Nai Gold Mine had a great impact on him.

Yang Deshan is currently in Lake Conero Industries

Both Park and Conero Energy have invested and held the most important positions, and it is impossible for him to leave Longta and run elsewhere, which also determines that he is impossible, and has no intention of cashing out from the Jonai gold mine.

He is more concerned about whether the Jonai gold mine will have the potential and possibility of development after the shallow rock gold is mined at the end of next year.

Of course, in addition to the early investment costs have been recovered, Yang Deshan has also received more than one million dollars in dividends from the Qiao Nai Gold Mine, and there will be at least one million dollars in dividends in the future.

Besides, compared to Cao Mo, what is he doing to make this little money?

"As far as the little deep reserves that have been discovered in the Qiao Nai gold mine, and even the theoretical estimated reserves are counted, it is not worth investing tens of millions of dollars to open a new operation area alone," Cao Mo and Yang Deshan have nothing to hide, and said frankly, "We currently have a relatively large investment in the exploration of the folded mountains northwest of Longta and in Benin, and the exploration area that has been licensed is also thousands of square kilometers, if we can make a discovery, the gold mining company's subsequent focus will be ...... in Benin."

"If we can package and buy the three small mining areas adjacent to the Jonai gold mine, is it worth opening a new deep operation area?" Yang Deshan asked.

After the Jonai gold mine has been mined in shallow rocks, only by opening a new deep operation area can his share continue to generate profits, otherwise the concession granted by the Oyo State government will be terminated prematurely if the mining is stopped because there is no investment value.

However, to open a new operation area deep into the underground sedimentary layer, the investment would have to be at least $80 million to 10 million, which he could not afford and did not dare to come up with.

Cao Mo's abundant funds are on the one hand, and having a refinery to improve the comprehensive mining rate is on the other hand, and at the same time, the Felician family gold mining company has completely realized localized management, and the manpower and corresponding management costs are much lower than theirs.

"Your share can remain the same, and when the time comes, it can be directly converted into the Felician family gold mining company, but including the Qiao Nai Gold Mine, the nearby mining area of two hundred square kilometers will be taken down, and I will give them a maximum of ten million US dollars," Cao Mo pillowed the back of his head with his hands, looked at the blue lake outside the terrace, and said a little unwillingly, "Grandma's, Xie Sipeng They have already made a lot of money, and in the end, each person can take one or two million dollars from me in the current ocean, think about it, it's really beautiful to think about them!"

"If you pay 10 million US dollars for the acquisition and add 10 million US dollars for equipment investment, you can double the reserves and mining scale of the Yibogu gold mine, it is not a loss-making business, you don't need to be angry!" Yang Deshan persuaded with a smile.

............

............

The price given by Cao Mo is not high, it is equivalent to paying them in advance the profits that can be mined from shallow gold mines and the residual value of equipment according to the current international gold price, and there is no question of deep reserves.

However, Xie Sipeng knew very well in their hearts that after the mining of placer gold and shallow rock gold, the follow-up mining was heavy asset investment, which was no longer something they could play with this capital scale.

And Kanem's turbulent and volatile situation also made him dare not bet all his net worth on one project.

If that's the case, the slightest carelessness will bankrupt his family and destroy all the capital he has worked hard to accumulate in half his life.

Now take the stake in the Jonai Gold Mine

It feels like a loss, but it is not a kind of compensation to be able to withdraw the remaining profits and the residual value of equipment one to two years in advance and transfer them to the current hot iron ore trade, and the domestic private financing cost has already been as high as about 20%.

In the three mining areas adjacent to the Jonai gold mine, investors weigh up and do not mind an early exit.

They are not eligible to participate in the iron ore trade, but gold placer mining in Akwa is currently in full swing.

Due to the restrictions of the Akwa junta, the scale of the placer gold mines cannot be expanded, but the mining costs are extremely low, and the investment of millions of dollars in equipment in two or three small mines may not take two years to recoup the original income, which is much higher than the profit of staying in Longta.

At this time, they are more than happy to switch to Akwa.

Yang stepped in to negotiate a deal in early September, and the Felician Family Gold Mining Company acquired 70 percent of the shares of the Jonai gold mine and three other small mines for $9 million, expanding the area of the Ibogu gold mine to 400 square kilometers.

In addition to the acquisition funds, the addition of a new deep operation area at the Jonai gold mine, and the widening of the sand and gravel road that connects the Jonai gold mine to the refinery on the north bank of the Luchuan Cape River, Benin's Oguta mine has proved gold reserves of two tons by mid-September, and the theoretical potential reserves are as high as 90 tons, which is already worth investment, and after winning the 20-year concession from the Beninese government, it will be necessary to build a new gold mining operation area and an independent refinery at the Oguta mine within the agreed timeframe.

Cao Mo, together with Abacha and Ojosan, injected a total of $35 million into the Felician family gold mining company, increasing the registered capital of the gold mining company to $60 million.

Cao Mo mainly completed this capital injection through Tianyue International, and almost used up all the cash obtained by Tianyue International through equity trading in the early stage, and he also transferred 80% of the equity of Felician Gold Mining Company directly into Tianyue International through this capital injection.

Yang Deshan's stake in the Jonai gold mine was eventually amortized to the gold mining company in exchange for a 3% stake, and the Felician family shared a 15% stake with Abacha and another 2% stake, which was almost allocated to top managers with partner qualifications, such as Kabuja, Lucy, and Wendy Calfe.

Purely based on capital accounting, Yang Deshan converted 3% of the equity of the gold mining company, and did not take any advantage, unlike Xie Sipeng and Xu Sheng, who directly took 1.5 million US dollars each, but considering the reserve potential of the Yibogu mining area and the Aguta mining area, and considering the accumulation of various resources in the local area of the Fellician gold mining company, the capital increase officially moved towards a large and medium-sized rock gold mining group, and Yang Deshan felt that it was worth it for him to exchange for 3% of the equity of the gold mining company.

Of course, he was not without worries.

After mid-September, the international gold price fell below $600 per ounce, and even reached a minimum of about $560.

Xu Sheng and they switched to Akwa, mining placer gold for huge profits, they stayed in Longta to mine rock gold, not to mention making money, but also incurred losses, this feeling must be extremely uncomfortable.

Cao Mo didn't feel anything.

He now has to consider how to diversify the risk of over-concentration of investment in Lonta, and focus on the entire West and Central Africa region as a whole......