Ann: AGM Presentation, page-56

My friend says,

The gold grades (measured in grams per tonne, or g/t) for mines with long-distance ore transport in Western Australia tend to vary depending on the geology and the type of operation (open-pit vs. underground). Mines requiring transport over 500 km usually justify these costs with relatively high grades or by processing ore types that demand specialized facilities. Grades for Some Long-Distance Transport Mines: 1. Deflector Gold Mine (Doray Minerals): • Gold Grade: Approximately 5-6 g/t. • Ore Type: High-grade, gold-copper ore that requires specialized processing. The higher grade helps offset the cost of transport. 2. Tropicana Gold Mine (AngloGold Ashanti/Regis Resources): • Gold Grade: Typically 1.6-2.2 g/t (open-pit) and 3.5-4 g/t (underground). • Ore Type: Tropicana’s large-scale operation allows for lower grades in open-pit mining, but high grades in underground ore justify the costs of occasional long-distance transport for specialized processing. 3. Dalgaranga Gold Mine (Gascoyne Resources): • Gold Grade: Around 1.0-1.5 g/t. • Ore Type: Dalgaranga processes relatively low-grade ore but benefits from economies of scale. Long-distance transport occurs only for specific needs, like blending higher-grade ore. 4. Yandal Gold Operations (Northern Star Resources): • Gold Grade: • Jundee Mine: 4.5-5.5 g/t (underground). • Bronzewing Mine: Historically 1.5-2.5 g/t (open-pit). • Ore Type: Satellite deposits in the Yandal region, particularly those near Jundee, have higher grades suitable for long-distance transport. Economic Justifications for Long-Distance Transport: • High-grade deposits: Transporting ore with grades above 3 g/t is generally more viable as the higher gold content increases revenue per tonne. • Specialized processing needs: Mines like Deflector and Tropicana transport ore for facilities equipped to handle refractory or sulfide-rich ores that require different techniques (e.g., pressure oxidation or bio-oxidation). • Scalability: Large operations with significant economies of scale can process lower-grade ore profitably even after accounting for transport costs.