Geology, mining and assorted terminology thread Message Board

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Gold/Mining/Energy : Geology, mining and assorted terminology thread

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To: Peter J Smit who wrote (91)	2/23/1997 3:39:00 PM
From: Walt	of 110

You pose a good question Peter, I just wish I had a more definative answer for you and I hope some people more knowledgeable then I jump in here to help you out but I will give you a couple ideas or rough rules of thumb. One way is the comparison method. Take a look at producing mines of similar size type and location. Find out what is their ore grade and what is there cut off grade. That should give you an idea as to weither or not the deposite being explored is mineable. The other method is to take the values listed and figure out what a ton of rock is worth. Your take the values listed multiply them by the price for the metals involved and you should come up with a figure of say $120 a ton multipy by size of deposite say a million tons and that is the theoretic value of the deposit. Alot of other factors come into play but look at similar operation and lets say it cost $50 a ton to mine smelt etc. Subtract the two and there is the profit margin you can expect. Alot depends on where the deposite is, its type and mining methode to be used. I hope this helps some.

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