Agreed...basically still a good deposit....when gold goes up..PRB will be bought for sure.

Dave P is also completing the PEA...their are some underground mines that mine lower grades...2.0 to 3.5...it is sustainable....look at the Iamgold purchase last year with Trelawney grade is not great deposit is okay..i guess.

We'll see...low cost infrastructure and access to local housing and services ( power ) will be weighed against the potential for low grade...you know at 5000 ton per day ...a very small mill....would generate around 4200 gm's per day ( 260 ounces give or take ) so around 125 million annualy less cost to start up the mine.....open pit low grade will need 10,000 ton per day and then upgrade 5000 at a time. to get to 20,000 for around 225,000 ounces a year..so a 20 year mine life before high grade is even entertained...I suspect the latter scenario open pit first will be cost effective.....can always go deep later. Good recoveries will aid this.

About 10 years from now...the Chromite will be done...even if Cliffs steps out of the picture.

I believe gold will take a sharp rise for 8 reasons.

1. China, India and Russia + a host of other companies moving more gold into financial instruments
2. U.S. dollar will continue to fall back against other currencies.
3. Inflation, general overall hydrocarbon consumption in China and India is just getting started.
4. ETF outflows will dry up...and the amount of stored gold is not correct or as high as they say.
5. More Countries will demand repatriation of their Gold
6. Financial instruments designed to be backed by gold will have to come clean.
7. Supply is becoming lower than demand.
8. Consumption is a self fulfilling prophecy in that if you buy now betting on the above 6 reasons...and your right ...gold will spike higher...if every dollar you invest goes up say 30 % then gold in 5 years will be roughly...5 grand and you will benefit by a weighted average and hedged against inflation and U.S. Treasury practices.

What would you rather be paid in ...U.S. treasuries, gold or a currency backed by gold.

I think China is on a major consumption path. The Shanghai index grows higher every few months and is physical settlement.

As for PRB let the majors decide...if they find Good Gold Grades in East Limb......then all bets are off.

Best of luck