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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Bob who wrote (2721)	1/25/1998 3:03:00 PM
From: D.McQ	Respond to of 4571

I thought everyone might find the following information useful: Keep in mind that this is talking about g/t. There are 31.103 grams in a troy oz. also 1 troy oz/short ton is 34.2857 grams per tonne Using the table in the Mines Handboodk 1 g/tonne = .029 oz/ton To put this into better perspective with regards to BCMD, High Grade ore is 3-5 g/t or .088 to .146 oz per tonne and they are milling from .7 oz/ton and up. 24.0 g/tonne = .7 oz/ton 35.0 g/tonne = 1.022 oz/ton 70.0 g/tonne = 2.044 oz/ton 100.0 b/tonne = 2.920 oz/ton ezenet.com <<<<<<<<<<<<<HOW GOLD RESERVES ARE VALUED Rock weighs about 2.2 - 2.5 tons/m3 Gold is usually economic for mining at 1 g/t. If it is a surface deposit, easy access (i.e. roads to site, not on a mountain top, etc.) heap leachable,maybe less, e.g. 0.5 g/t would be OK. Less than that probably not. On the other hand, deep deposits, say 200m down, are expensive, and if the company has to build a road first, also expensive. If not heap leachable, other extraction/refining techniques are available, some more expensive than others. Gold in the ground is often worth $40-$100/oz (U.S. dollars) higher grade being worth more. 3-5 g/t is considered high grade. If the co. has sold its gold forward (like Barrick Gold, sold all its gold production for the next 2 yrs at $390 /oz back when gold was higher) then their profits may be higher, but since it takes several years to start producing, the forward sale won't make a difference unless they have sold many years forward. Often for a given volume of rock, some of it will be uneconomical, some erosion will reduce the volume (e.g. 1000m X 400m X 250m deep, but "this is not a shoebox"), etc. That's basically it. >>>>>>>>>>>>> Darlene