Hi spid81 the debate gives more opportunity to discuss the...

Hi spid81 the debate gives more opportunity to discuss the relationship of mining cost per ton unit applied to strip ratio...US$33.30 per ROM tonne is life of mine average while the $3.14 figure is a fixed per unit ton cost...Make sure do you not confuse ROM of Mine with the formula...

The second part of the formula covers processing cost to grade...Its the raw numbers of your project at mining level with everything else built-in around them hence why it is not included in the formula...One needs to keep in mind all projects are different and due to the unique Lindi project can be optimised...

Have included below a variable according to strip ratio as indicated Mike Elliott's tweet.

Project A 800 tons per day 17.9% TGC

ROM mining cost per ton unit US$3.14+(4.4+1) /17.9% = US$33.30
Processing cost per ton unit US$27.56 / 17.9% = US$154
ROM Ming cost US$33.30 + Processing cost US$154 = US$187.30
800 tons per day x 300 days x 17.9% x 90% recovery = 38,664 tons

Mining cost $13-25/Rom ton at mining level

Year 1 US$3.14 (5:1) / .179 = US$36.65 per Rom ton
Year 8 US$3.14 (8:1) / .179 = US$53.41 per Rom ton
Year 20 US$3.14 (3:1) / .179 = US$25.48 per Rom ton

If you try an upgrade a weaker resource it will fail...The high grade domains of the Lindi project give the project a distinctive advantage....

The design advantage of the Lindi project has 2 main advantages high grade and superior flake size combined with a known market constraint of 40,000 tons per annum while the most likely lagging performance will be recovery. Redundancy of plant and possible higher feed grade @23% TGC can mitigate the project in 2 areas by having both plant capacity and resource availability…As per calculations provided processing cost is stagnate to grade the off set would be slightly higher ROM of mining if this were to occur...IMO

Regards Croc (Riding A Bull....)