I dug up this email from Hubert (posted here before) regarding the cost of hauling from Clan. It seems even more relevant now that mill feed from Nicholas Lake is gone.
1- The cost of hauling (trucking) the ore from Clan Lake to the mill is estimated at $16 per tonne. This is nothing when the POG is $1600/oz. It means that in order to cover the extra cost (It is $ 0.60 per tonne for Ormsby) you have to have 1/100th of an ounce in the ore in order to pay for the hauling ($1600/$16). This is equivalent to 0.34g of gold per tonne! Clan Lake grade is way higher than Ormsby and Nicholas Lake. SO "Are they planning to haul the ore?" YOU BET
2- Cost of production: The PFS says:
· Average operating cost/t of ore at Nicholas Lake underground is US$51.26 including
development, processing and G&A.
· Average operating cost/t of ore at Ormsby underground is US$57.20 including
development, processing and G&A.
· Average operating cost/t of ore at Clan Lake open pit is US$43.00 including
development, processing and G&A.
This means that -including the hauling- the cost of production is lower at Clan lake (open pit)!
