This is the cost of gold production from TRY's announced proposed acquisition of the Casposo Gold/Silver Project from IAU after allowing for silver credits based on an ASX announcement from IAU on July 17, 2008.
"The average life-of-mine operating cost was also reviewed and confirms a gold cash cost of production at $90 per ounce (after allowance for silver credits at US$14 per ounce)."
There is a "Probable Reserve (June 2008 at $690 gold and $11.80 silver) estimated to be 1.7Mt at a grade of 5.16g/t gold and 120 g/t silver (6.86 g/t gold equivalent) which equates to in-situ mineable material of 382,535 equivalent ounces of gold.
This compares to a previously announced Probable Reserve of 1.8Mt at a grade of 4.69g/t gold and 113.8g/t silver (6.11 g/t gold equivalent) for 351,935 equivalent ounces of gold.
The new ore Reserve is based upon applying an annual production rate of 63,000oz gold equivalent over the current 5.5 year mine life."
My comment:
With some outstanding drilling results released since and substantial resource upside expect this high grade resource to become bigger and better.
It is typical of TRY, understanding the importance of grade, to acquire a high grade gold/silver resource from a company that is currently not in a financial position due to the credit crisis to proceed to development.
TRY Price at posting:
$1.24 Sentiment: Buy Disclosure: Held
