For 20g/t Au dirt rather than 10g/t Au dirt, the mill would ideally run not at 50%, but at 100% capacity for 50% of the time – AKA “Campaign Milling”. There is always a cost to shutting down and starting up a mill in Campaign Milling, but the Operating Costs would be much lower on a per oz Au basis. The Fixed Costs would remain essentially the same, but be spread across a much higher Au production rate.
Overall, much preferable to mill high grade dirt for a shorter time if it was available.
DRM Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
