what if recoveries are only about 70% (for a heap leach)???- then that would virtually wipe out any profits. also it is unsafe to use the "present" gold price - because that leaves no buffer for a decrease in the gold price
watso was just looking at the quarterly from sbm.. it is obvious that sbm have spare capacity at the marvel loch mill, just compare the present day mill output, compared to the output from several years ago, when the mill was treating , mostly, open pit ore. it could be that the mill is working at about 50% capacity.
some arrangement with sbm, would have to be on the cards. if for arguments sake, sbm were to purchase the relevant deposits, and mine them - then the total mining and treatment costs (including depreciation, and royalty) would probably be about $75 per ton.
after allowing for pit optimization, there might only be about 540000 tons, which are mined and treated. at the present gold price, there might be a margin of $20 per ton.
in rough figures, sbm could make about $10m on the relevant gold - less any purchase cost. a ball park figure of $2.5m would be a reasonable price to pay
GDA Price at posting:
0.9¢ Sentiment: Sell Disclosure: Not Held
