JORC Resources for the first time....lets assume they started today.... refurb the plant (cause it won't work like it does right now) - It's going to take 3-6 months - Just is. Everyone is busy, getting the funds, getting the right people in to tell you what needs to be done.
In the mean time - wait for lab results to come back to make sure its viable, source out alternate ways to process the ore if it can't be done on site, build a full mine plan... and there is no way you'd go in and start mining ore with only a roughly defined resource.
You can correct me here but is gilded rose going to need to be mined underground? Also I think you mistyped - 143,500 tonnes for 19,000.
Lets be realistic and assume you can even get access to 50% of that ore body ... you are now @ 9500oz - Plus if it does need to be mined underground - you are looking at something close to $95/t ROM minimum (you can use St Barbara as a comparison at their King of Hill project - The Gwalia mine is also significantly more again).
So I've just spent $6.8m on mining/processing the ore.... At best I am going to make $15.2m - Left over $8.4m. Nice amount - Then if it needs to be underground - lets factor in the design of the decline, preparing the site, paying government royalties... Producing Concentrate? Pouring on site?
It adds up!
As I've said before I have no interest in QMN and I am not at all trying to be negative on the stock, I just keep updated on this company for other reasons and feel like not really that many people know the full process involved in starting from scratch and what it takes to become operational
QMN Price at posting:
3.5¢ Sentiment: None Disclosure: Not Held
