Mr. Smilen, I think there are some interesting points to ponder regarding the impact of the size of FL. Right now, if memory serves me, the largest gold deposit in existence at this point stands at about 85 million ounces. What would a factor of 4 X the current largest deposit do to production expectations and production approaches? What about application scenarios?
The reason I bring this up is because it ties to your second question. As to the first, I believe we have heard a number of times that gold equivalent of .06 or better is typically considered viable. However, on your second question, there is really a two part answer.
First, how long it takes to get out of the ground with THIS much material will create a "discount" off of the true full value of the total metal content do to the anticipated extra long mine life. However, second, will this much metal available from a reliable source spur manufacturing applications which can count on a stable supply (ulike Russia for Palladium) that would inspire a larger recovery operation than usual to meet production demands in the manufacturing sector?
This is pure speculation on my part and I have had no one at Naxos present this scenario. This is my marketing hat on right now and it makes me wonder what response the market will have to a deposit this large. If I were an engineer who would LOVE to put more PGM's into the products I design to make them more efficient, and I knew there was indeed a stable supply to meet the demand my design would create, hey with a source in the U.S., why not!!
As to a specific answer to your question #2, I am sure there is someone here who can answer it much better than I.
Regards,
Tom F. |
