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

To: jackjc who wrote (21314)	9/18/2006 2:29:24 AM
From: E. Charters	Respond to of 78418

They were not profitable with 7 gram ore at lower gold prices.. I would expect them to turn a profit with 10 gram ore, but I haven't followed their grades versus bottom line curve so I cannot say at this time. One thing I would point out is their mining rate last year was 542 tons per day. Their planned rate is 273 tons per day for 2006-2007. What they seem to be doing is rationalizing resources and raising grade in order to make better profit. It all depends on mining methods and costs. There are different ways to reduce these and no two operations are comparable. At Kerr Addison we used to operate some stopes at $1.50 a ton in 1977. Today that would be still only 5 bucks. They were pipe-like so bulk methods could be used. We also did most of our raising with boring machines. This was 30 years ago and the methods or mining and milling were more advanced than many operations today. Co generation was used.. and many other things. EC<:-}