great analysis karl except you overlooked a few points and reiterated one of my own. The drilling they've just announced today obviously does not need to be in the pit otherwise the rigs would have been underwater. Morila west.... West of main pit. When the pit is at it's busiest, the drill rigs won't be near anything to do with the mining operation and even so, a drill rig going to 400m probably takes up no more space than your lounge room.
Now the official number I came up with had two major assumptions (which is why I have added a healthy range for my estimation) which are as follows; 1. All of the tailings mined during Q4 was processed and 2. Linear costs for mining and processing whether it's hydraulic or shovel (I know it's not exactly equal with the combined methods and differences in haulage requirements etc but the raw mining cost was about $5/t so a dollar either way won't matter too much in the scheme of things.)
326kt mined/846kt processed = 0.386 x Total Processing cost = $6.305M
326Kt mined/ 798kt mined = 0.4097 x mining cost = $1.694M
Processing cost + Mining cost = $7.99M
Revenue of tailings
326kt x 0.33g/t = 107580g
Recovery of 75.2% x 107580g = 80900g.
80900g to oz = 2854 oz.
2854 x $1807 = $5.157M.
I have faith in both projects themselves, but having blind faith in the approach that's being taken by management in any company is never a good strategy. Ultimately they won't change anything based on my or anyone else's critique on hotcopper but sometimes it's good to point some things out and encourage some critical thinking.
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Ann: High Grade Gold Results from the Morila Super Pit, page-42
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