Small scale production scenario18 Jan 2021 18:16
@thebasher If it helps another way of looking at the tailing production might be?
Figures provided by GWMO so far
> MJ tailings ore = 12,000t
> MJ tailing grade = 2.28g/t gold & 658g/t silver ... both TBC by proper analysis
> Recovery 85% gold & 40% silver ... both TBC by lab results
Assumptions ... but who really knows at this stage
> Small scale plant throughput = 1,000t / month
> AISC = $1,200 & Gold $1,850
Production Gold = 1000t x 85% x 2.28 g/t / 28.35 = 68.4oz/month
Profit Gold = $1,850- $1,200 = $650/oz or £495/oz
Revenue gold = $1,850 x 68.4oz x 0.76 = £96k / month
Cost Gold = $1,200 x 68.4oz x 0.76 = £62k / month
Profit gold = £34k / month or £408k for the full 12 months at 1kt/month ore to clear MJ sum 12kt tailings
.... and then you have the silver on top as a bonus probably adding 10-15% to these figures
Of course any number of variables could change the above but you get the idea. The BIG thing for me is then there is a production facility that can then process Olympic tailings and/or ore from any number of discoveries on the property by which time we know the mined ore grade will be much higher so a small scale plant is probably more than adequate for some time.
Additionally once the capital cost falls out of the AISC calculation and their processes get slicker and/or the grade goes up the AISC will drop very quickly so each ton of ore mined becomes far more profitable very quickly. My expectation is that the 12kt MJ tailings will have effectively paid down the cost of the small scale plant by the time this has been processed.
Tailings are NOT earth shattering but having it paid for capital plant kit and then generating a decent surplus profit ready to process full fat gold/silver ore is the main attraction here.
AIMHO APR
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