OAR Predictions, page-1739

@Scarpa Can provide further clarity or information if need be but below is one of his posts from the GOLD thread which IMO answers your question (https://hotcopper.com.au/posts/46578851/single):

Gold viability and choosing a gold exploration stock:
While I am here, with prices where they are, I suspect the g/tonne for viability in operations will also reduce IMO. Obviously those gold companies in production are going to be making a killing.

For open pit operations anything over 1 gram per tonne is ok, but anything less than 3 grams per tonne for an 'only' underground mine is unlikely to be viable.
https://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/what-makes-a-world-class-gold-deposit/

From this article:
https://tsxmedia.com/2019/03/05/dont-get-caught-in-the-high-grade-gold-trap/
"Generally speaking, one gram per tonne works for open-pit mines, but as a rule of thumb underground gold mines require at least 2.5 g/t to be economic."

But the key measure of viability is resource 'per vertical metre' concept, so for those looking at exploration plays choose wisely - https://www.mining.com/2017-gold-deposits-boasting-highest-grade-drill-intersects/

(Not a DEG holder but went through the vertical metre concept in this post some time ago - Post #: 44023489

For those wanting just a simpler basis of calculation in any potential play- this article is a pretty simple explanation of getting to a resource and then to grams - a bit more complicated than that but helps understand the basic concepts of resource estimation, i.e. Resource = Strike length * width * depth * specific gravity * grams per tonne:
https://undervaluedequity.com/mineral-deposit-value-how-to-calculate-the-potential-value-of-a-mining-project/

Finally, noting where the gold price for those assessing exploration plays, if you decide to invest in an exploration company, instead of an existing producer, be mindful it takes some time to go from exploration to production, noting 1 in 100 exploration plays ever get to mining. It also takes time to identify a Indicated and Measured resource which becomes the basis of DFS/bankable studies and decisions to proceed to mining. Therefore, it is not what the gold price is today for prospective exploration plays but what it might be in 3 years time, hence my interest inpart also in why Buffet has entered the 'gold market'.


Apologies for ripping your post Scarpa but I am unable to provide a better explanation than the one you have provided elsewhere & I was unsure whether you would respond.