News: Interview: Management update – Coolgardie acquisition, page-28

G'day guys, found this on an old thread for contractor/toll treating of gold ore in Kalgoorlie region a few years back. Hard to know how to raise for inflation and drop for industry conditions and treat forex, but maybe this gives some broad estimate of costs? will wait to see if FVR's big investor buddies have similar numbers in their financial models, (my bold)


The following is from a technical paper written in Feb 2009 by La Mancha Resources for their White Foil open pit mine (20kms West of Kalgoorlie) using toll treating from Focus Minerals (SEE FML release 27/1/2010)
http://www.lamancha.ca/assets/68a37605836e4ad7b5614724846dcfd3_2009_WF_P1-feasibility_study.pdf
Drilling and Blasting: $2.54 per tonne
Mine Haulage:$2.99 per tonne
Haulage to processor: $4 per tonne
Toll Treatment: $23 per tonne
all contract based
So we have costs of $32.50 tonne in 2009 prices


->back to my workings on McPherson, Using 1.8g/t, 5% per annum escalation of cost, I get $45/tn for a $700-750/oz cash cost, which is similar to the following which also makes me think it's ok ballpark;
http://www.marketwired.com/press-re...chas-fourth-producing-mine-tsx-lma-950435.htm