This morning I asked Dave Webb, how might the "rate of return" (ROR) in Tyhee’s Preliminary Feasibility Study (PFS) be different from what was delivered in its Preliminary Assessment (PA) nearly two years ago?”

He said, and I’m paraphrasing, that the ROR depends on many different input costs such as: gold resource size, grade, distribution geotechnical and hydro geological regime, the metallurgical and environmental aspects of the ore and waste streams, the cost of fuel, labor, and operating supplies, the cost of capital items (mill, pumps, pipe, wire, trucks, shovels and drills) and much more… Also included on this list are the plans and design of the operation, as well as the sequence of mining as it affects the rate of return. Of course, the price of gold and the cost of capital have a large impact on the rate of return.

Finally, he noted that (no surprise here), to varying degrees, all these factors are different this year (2010) than they were in July 2008 when Tyhee delivered its Preliminary Assessment.

So, what’s your guess as to whether the economics/ROR will be more robust in the upcoming PFS, than they were in the 2008 PA?

Here’s mine:Better NOW!

And, I suspect Puplava knows that already.

Cheers,

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