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

To: AlphaRomero who wrote (66940)	8/31/2009 7:34:57 PM
From: E. Charters	Read Replies (1) \| Respond to of 78421

Doubts can be the most fecund of critters. They can multiply in the unknowing mind to make a hamster blush. The more doubts mate, the more baby doubts wriggle about, and the more jittery you get, leading to more and more doubt fissioning. Eventually there is a doubt explosion and a monumental explosive ejection of broken factoids rain down, erasing all firm conclusions. The only thing you can do is run faster than raining doubts. After a while nothing is a good idea. Whenever a baby gurgles it is an evil plot. Everything becomes ludicrously phony. Downtown merchants stalls with smiling entrepreneurs are Potemkin villages. Once noble deeds are now hopeless cause. Of course you can make money at 0.10 grams per cubic metre. It's a ridiculous amount of money to handle only two tons of sand. If you paid some itinerant labourers 3 dollars a day they could probably put 8 cubic metres of gold ground through a rocker in one day. That is 0.80 grams, or $24. You are already making money. All you need to do is hire more men. At only 2600 cubic yards per day, the fuel cost is about $0.62 cents per ton, or 1.24 per cubic yard. It does not change much as you get bigger, as you have to move tons. Scale has little to do with fuel consumption, although larger diesels are more efficient, and bigger equipment moves more yards per hour. At 0.10 grams per cubic metre you are sucking wind. At even 40,000 tons per day, you make barely a million a year by my calcs. But at 0.20 grams and 5% royalty, you make about $29 million per year at that production rate. You would need two good suction dredges to achieve that sort of rate. EC<:-}