compare amayapampa grades & set up with this

Here is set up/production info for a 2.2mtpa plant. Very similar grade to Amayapampa etc.

The biggest difference now is that gold prices are now much higher..

Also, plant set up using Python will be much less. And, staff, fuel costs, and those type of dynamics are better than they were at the time of this report, as there has been deflation in mining costs and pressures. Worth the read imo.

"Allied Gold Report Budget Reviews Completed and Development Proceeding On Track


Allied Gold Limited ("Allied")(ASX: ALD) is pleased to announce that in conjunction with its design EPCM Engineer Intermet Engineering Limited ("Intermet") an updated Capital and Operating cost estimate for the Simberi Oxide Gold Project has now been completed.

HIGHLIGHTS
# Recovered gold increased by 107,000 ounces to 692,000 ounces

# Aerial Rope Conveyor ore delivery system confirmed to significantly enhance operating efficiency and cost Optimised average throughput increased to 2.2 Mtpa resulting in increased average annual gold production to 84,000 oz

#Estimated operating cash surplus increased to US$139 million at gold price of US$550

#Company remains fully funded for Project Development
#Targeted first gold production third quarter 2007

Key project fundamentals based on US$550/oz gold price and exchange rate A$1 = US$0.75 are;

- Life of mine 8.2 years

- Average annual mining rate 2.2 Mtpa at 1.37 g/t gold

- Annual gold production 84,000 oz

- Estimated operating cash cost US$306 per oz

- Estimated capital cost US$60 million (including contingency)


Indicative Financial Analysis (using gold price inputs of US$550 and US$600);
US$550 US$600 ------------------------------------------------------ NPV (discount rate 8%) US$58 million US$82 million IRR 29% 36% Operating cash surplus US$139 million US$163 million ------------------------------------------------------ Project financial analysis is based on open pit optimistations using gold price inputs of US$350 to US$550 per ounce and is prepared on a pre-tax, ungeared and unhedged basis. The project economics are expected to be further enhanced by the use of debt financing and the implementation of a flat forward gold hedging program."

Source:

http://www.itnews.it/news/2007/0623091003190/allied-gold-report-budget-reviews-completed-and-development-proceeding-on-track.html