Silicon Investor (SI) -- The First Internet Community

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 and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (65821)	6/21/2009 9:47:20 PM
From: E. Charters	Respond to of 78411

If they mine it underground, as they will probably have to, as it is in a deeply incised valley, then the terrain don't matter. On their last few holes they have these averages approximately. Metres width Grammes per tonne 25.25 5.84 Feet width Ounces per short ton. 82.78 0.17 I stated that the cost to mine that underground, at depth between 110 and 510 metres, or 361 to 1672 feet, would be no more than the cost to open pit mine it. Well that is dependent on a few factors. One, that it is not so deep that it could not be mined open pit if the terrain would allow it. Of course if that were the case, they would do it that way. But lets say the cost to bulk mine that stuff is 40 bucks per ton, a good guess at 82 foot wide, blast hole caving mining. If it were open pit and 1000 feet deep, then the stripping ratio would be 8.43 to one. At $2.50 per ton of waste removed, the mining cost would be $26.00. It is comparable. It is difficult to know what we are looking at here without sections. Structure is important. Are they vertical, or flat lying zones? It appears that they are moderately dipping (45 degrees) parallel structures. In this case, open pit mining if it were possible, would be more profitable, if they did selective pit bottom mining. The only other questions is the water, if it to be mined underground. We generally speak of tropical terranes as water bound below a certain depth. This is not necessarily written in stone, and it may not be a problem. The widths of these zones is extremely generous. Even more so given the grade. If we found that stuff in Canada we would generally classify it as a license to print money. The cost all up to mine this stuff cannot exceed $80.00 per ton (It could be significantly cheaper) and it weighs in at $161.50. Given a 5,000 ton per day operation, that is 407 thousand dollars in your pocket every calendar day. Not shabby. BTW, "makes as much per ounce", generally means in the clear, or profitably. What else can it mean? EC<:-}