Lip stick on a pig...
All the open pit modifying factors are at the extremes of optimism. A$3,250/oz POG, "overall payable metal recovery of 91.2%" for fresh rock is higher than historically achieved and unrealistic open pit cut-off grades of 0.35g/t (oxide/trans) and 0.7g/t (fresh). Most (all?) material won in cutbacks so expect high strip ratios, therefore higher mining costs. What are the open pit mining costs? What are the processing costs? 0.35g/t is about A$30/t recovered gold @ A$3,250/oz - can they really mine and process a tonne of oxide ore for A$30/t? It appears they have reported all gold above 0.35g/t and 0.7g/t in the biggest pit shell they have.
Optics don't look good... I would not expect much, if any, Resource to Reserve conversion from the open pit.
UG below 5g/t = marginal. Factor the refractory nature of the ore body and lower recovery/payable metal and <5g/t is a little worrisome.
- Forums
- ASX - By Stock
- WMC
- Ann: JORC Mineral Resource Update
Ann: JORC Mineral Resource Update, page-6
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add WMC (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online