Just a minute
posted on
Dec 01, 2009 11:25PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
Rough numbers from looking and wondering... If we were to assume that 500 tons per day could be mined from the Hinge over only 20 days per month.
Further if we look at the garde being .5 oz / ton with only a 90% true gold recovery ... the hinge ore would have to supply only 4575 onces per month to generate $64,800,000 gross per year @ 1180 per once ...(still profitable at $600 per once)
now if we say in a worst case that hinge gold costs $300 per once to produce .. 54,900 onces per year would cost $16,470,000 per year to produce leaving a profit opportunity of over $48,330,000
Just an example to use in thinking about possibilities.. even @ $400 an once costs in... we have a workable and profittable deal ... Did not the production/milling costs of the hinge zone ore already point to less than $200 per once?
Try the same senerio at 600 or1000 tons per day and use 95% recovery... the signifcance of the new discoveries become even more apparant
My numbers are just senerios ... just playing around here
The San Gold mill is existing and does not have to be built thus not requiring a $160,000,000 in new capex...this adds much to the true value of new discovery...
The real magintude of the hinge zones and related discoveries are yet to be seen... it can be nothing else except very significant in relationship to other Canadian gold discoveries ..
Since 1911 folks have endevoured to unlock the gold riches of the Bissett camp.. San Gold has started to unlock the rocks right on the door step of those that came, explored, mined and lived in Bissett before ...
forgive my spelling
cheers