Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 98.59

-2.8%

Nov 13 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: goldsheet who wrote (68374)	4/28/2001 11:52:11 AM
From: russwinter	Read Replies (1) of 116759

Most of the newer open pit operations concentrate on higher grades and recoveries (oxides) to improves their payback periods and that's only natural. Over time though when looking at the mining plans, you typically see grades decline. Just as important though is that sulfides (lower recoveries)start entering into the equation, and that's where 265 POG becomes problematic. It hard to quantify, but my gut in looking over various deposits is that the "moment of truth, i.e: running out of high grade oxides, isn't that far away for many operations. Most open pits are smaller (at least the oxide portion) and short lifed. You really need a couple million (2 gram or more) ounces of oxide material with little waste to be economic, and there are few of those out there, and with exploration where it is, few are coming on stream. In the case of underground mines, it is just logical that they must go after the high grade veins to operate at these prices, and there is little doubt that is happening. It would be interesting to see a percentage breakdown of underground versus pit mining production.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next