Personally Turps.
If I was at IndoChine what I would do is utilise the 1.5 million ounce gold processing plant at Porgera which is only 15km away.
Currently Barrick can only produce 500,000 ounces since the grades of gold are deteriorating at Porgera after 20 years of mining.
The incredible shallow high grade gold at Mt Kare allows IndoChine to commence mining, without the Massive Capex!
They just need to finish sealing the 5km road, buy 10-15 heavy haulage trucks and truck it to Barrick.
The incredible grade of gold and it is sitting shallow in the Mountain, would only cost $300-400/Oz to extract. IDC could pay Barrick $150-200/Oz to process and it still only cost $600/Oz max!
Current price of gold is $1650/Oz leaving $1000/Oz profit margin!
Now estimate a 50,000 ounce prodn in their first year then lifting to 100-150,000 in Year 2!
A nice annual profit in Year 1 of $50million would be magnificent! And relatively easy to achieve without a large capex!
Cheers Nectar
mt kare incredible gold results 10 yrs ago+, page-37
-
- There are more pages in this discussion • 24 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)