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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (11857)	5/23/2006 5:58:31 PM
From: E. Charters	Read Replies (1) \| Respond to of 78419

Gold used to sell for ten per cent of its drilled off value in the ground. Echo Bay bought ounces at that price for years. Or better. Personally unless it was a measured resource that had metallurgy done I think that is a tad expensive. If cost is 10% and capex is 10%, and operation is 40%, then profit after tax is 20%. hmmmmmm..... For narrow vein I would pay hmmmmmmmm no I would not... pay at the back end with a smelter return or per cent of production. Front end is too scary for me. Share Valuation? Lesseee... 12-15% of gold in ground? In a high profit mine.. Zinc is more complex. Concentrator cost would be a bit more expensive, and ore recovers at about 10% less. Smelter cost is higher, transport cost, and marketing cost. You need road or rail into a zinc mine. Zinc could cost you 30 dollars a ton more in a high grade ore for smelter charges and shipping. Low grade ores are far less of course, as they concentrate more. Capex could be 50% more in a sulphide operation, whereas mining costs could be significantly lower, perhaps 1/2 the cost per ton. Getting the concentrate into market has a significant cost. You have to find buyers who will favour your product. Prices vary widely from smelter to smelter. It used to be that extracting the silver from zinc was a real headache. Now many smelters can handle it. It may even float away from the zinc in the con. I mean make its own con. Every case on its merits I guess. I have seen arsenic in a gold flotation product cost considerable. EC<:-}