When I spoke to PS a few weeks back, he did mention that you can make a good buck out of low grade mining.
Coincidentally, he made reference to a mine called Gruyere in WA with a head grade of 1.2 g/t, which was set to make a bucket load of money.
Add to that the price of gold which is trading currently at over US $1500 per/ounce, it's not hard to see why.
For those who are not familiar, Gruyere is Australia's newest gold mine which is a joint venture between Gold Road and Gold Fields, and is set to ramp up production to full capacity over the next few months.
do not advertise external links.au/companies/news/900812/gold-road-resources-confirms-2019-production-guidance-as-mill-work-progresses-900812.htmlHere is an extract from the link above in relation to Gruyere (take note of the low grades, which was the interesting part)...
Working towards commercial production rates
From the commencement of mining to the end of the July production period, a total of 3.4 million tonnes ore has been mined at 0.83 g/t gold for 90,700 contained ounces of gold.
This ore will be fed through the mill with commercial production anticipated mid‐way through the 6-7 month ramp‐up period as previously guided.
During July 2019, 2,260 ounces of gold were produced from processing 330,000 tonnes grading 0.82 g/t gold with an 89.8% recovery rate.
Notably, recovery is consistent with feasibility study test‐work and better than anticipated during early plant commissioning.
Not entirely sure what the average grades are across all the drilling assays to date at Slate Dam - but i would think it would be on par with what they have at Gruyere.
