Have a listen to Jake Klein (CEO, Sinogold) at http://www.brr.com.au/event/SGX/1116/16092
Their Jinfeng deposit is what we are trying to replicate with Archipeligo. In the absence of further info, it is probably the best we have to go with. Bear in mind that it is the largest gold mine in China.
For Phase 1, Klein indicates...
production rate = 180,000 oz/yr extraction cost of US$200/oz capital = US$90-95M extraction cost = US$200/oz CF = US$40M/yr (assumes gold price = US$500/oz)
The extraction cost is relatively low, partly because of its location in China. You'd have to factor in the %APG compared with Archipelago re potential APG income. Also, probability of project go-ahead.
It cost Sino, US$33M for Jinfeng aquisition and exploration (US$9/oz).
APG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
