mining news on burbanks plant, page-13

Marvin - I did state "If they extend the high grades". I agree there is some time to go and much work to be done to get to a MC of $1billion, if at all.

Their profit is going to be much higher than $100 per ounce as they have grades much higher than most other producers. Whereas most producers get 1-8g gold/tonne of earth removed over a 5-10m interval, RMS should get an average of over 25g/tonne initially as they target the higher grade intersection, maybe 30-40g/tonne (depends on further drilling to extend high grade body), over a 50m interval - hence costs are likely less than half than most per ounce obtained, and profits hence considerably more.

In terms of resource size:

It may be they hit the highest grade and thickest point of the deposit, though odd are that areas within this strike will be even better, and some will be not as good. when you look at the sive of the area they have found gold over though the overall ore body is pretty big and if only a small percentage is such high grades a 2-5 million ounce resource is very possible (bear in mind 154g/tonne = about 300g per cubic meter * 48m = 15kg/square meter of area on the surface, so you doun't need a massive strike area to have a massive resource).


Interesting - worth a hold of a modest investment and hold IMO.