From the recent Announcement,
"Mineable cut-off grade (MCOG) is stat
ed as
3 g/t of AuEq. AuEq is the combination
of Gold & Antimony, so Gold could be 2g/t & Antimony AuEq could be 4g/t which gives a
total of 6 g/t AuEq. That's is a very good result economically
Based on 6 g/t AuEq and MCOG of 3g/t, then Variable Cost (OpEx) is 3g/t. A grade of 6g/t would therefore have a gross profit 3 g/t or 50%.
If Gold Price is $A2500/oz, mining gross profits would be $1,250/oz.
This doesn't take into Account the CapEx which is where the Critical Mass is paramount & the depth. The Cost of a Ramp is directly related to Depth.
Eg CapEx for Gold at 160m could be about $8m (based on a gradient of 10% & $5k/m). if the Gold Deposit was 160k oz, the Av Cap Cost is only $50/oz or less than 1g/t. ($8m/160k.)
My Conclusion, is that Visible Gold at say 30 g/t is 10x the MCOG. That means MCOG or Opex us only 10% and gross profit would be 90%. Thats incredible ($2,250/oz) but highlights that anything from 6g/t is good enough for an Economically viable mine, providing there us a Critical Mass to cover Capex.
