SPR spartan resources limited

Ann: Dalgaranga Gold Project - Mineral Resource Estimate Update, page-269

  1. 35,473 Posts.
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    Just some musings :
    I guess you need to add drive and decline development costs before the plant is switched on ,.
    apart from the exploration decline already going in , so they will probably need a return decline guessing 1000 meters long ,

    At the end of the straight decline before processing starts , Maybe they will put in 3 drives of guessing 250 meters in length each say 25 meters vertically apart (given the luxury of such a wide ore body ) so say 750 meters of total drive and maybe another 700 meters of spiral decline to connect them up, all costing say $10k a meter so say (1000 + 700 + 750 )* $10,000 = $25M ?

    Personally to me looks pretty cheap development for the ounces per vertical meter say $25M /75Meter = $340K per vertical meter development cost
    Say 1200 ounces per vertical meter (put in what ever number you think it will be ) recovered at end of straight decline
    340K/1200 = A$283 an ounce development cost

    Say 1200 ounces per vertical meter at say $3500 an ounce that is $4.2M in sales and this thing looks like it goes down a kilometer , and the OVM increases once Pepper is added in deeper down so development costs should then drop again per oz .

    Once mining then the stoping and processing costs also have to be added to the cost per ounce but guess they will be pretty low if the ore runs say 6.5 grams a tonne recovered
    Say $20 a tonne processing cost then that is (20/6.5) * 31 = $95 an ounce processing cost .
    Say $160 a tonne stoping cost (operator decides to get slack)
    (160/6.5)*31 = 763 a tonne mining cost

    development (283) + mining (763) + processing (95) = $1141 per oz C1 cost
    What is interesting to me is how low the development costs look like they will be as a % of total mining cost due to the high OVM all in Never never .
    Last edited by plough: 16/11/24
 
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