toll treatment costs

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. Say $55 today? (just guessing)

from the 1/4ly, KMC treated 31708 tonnes ore, and @ $55 tonne costs that = $1,743,940. It received $5.7m in gross sales from 3353 ozs . So after transport and processing KMC should have received around $4m for those 31708 tonnes ore (processed to 3353 ozs gold.). these figures translate to $520 cash cost per oz.


Like most here i'm just doing my best to understand what KMC are doing and this is the only example of actual figures that i have seen.

It is worthwhile reading La Mancha's latest report.
http://www.lamancha.ca/en/news/2011/la-mancha-posts-its-strongest-quarter-to-date-record-net-earnings-and-cash-flow-from-operating-activities

"At Frogs Leg (also toll treating) Cash costs for the third quarter of 2011 averaged AU $574 per ounce,
The White Foil mine produced 9,388 ounces of gold during the nine months ended September 30, 2011, at a cash cost of US$821 per ounce" (about AU$760)
White Foil is 2.2gms tonne
Frogs leg is 5.14gms tonne (underground mining)
Bullant is 5.07gms tonne

In the absence detailed information from KMC my conclusion from all this is that Bullant should have cash costs of around $600 ozs... which would be regarded as quite OK if it is the case..