Nice downramp so I may as well provide the affirmative lets say the have about 15K ounces on the ROM pad. So no mining cost on that just a processing cost at I am guessing $30.00 a ton
Given they should recover around 0.42 ounces per ton from that batch of ore resulting in a processing cost of $71.00 per ounce I am not to concerned given they are hedged around $1500.00 an ounce.
Metrics used 500kw ballmill + 200kw for ancillaries including crusher = 700Kw 700 *0.4 litres diesel per hour = 280litres diesel per hour 280 * $1.40 per litre = $392.00 per hour diesel cost.
30 staff * $60.00 an hour = $1800 per hour
ball mill should process around 34 tons an hour
Diesel and labour costs then = $1192.00 an hour other costs rule of thumb 40% of above so = $476 476 + 1192 = $1,668 per hour check $1668/34 tons an hour = $49.00 a ton which is about twice the average gold processing cost per ton based on mills I have looked at
ball mill 34 ton per hour * 0.42 oz * $1300.00 an oz = $18,500 an hour revenue
Seems to be a bit of fat left in the system. Just my opinion and often wrong
NWR Price at posting:
4.0¢ Sentiment: None Disclosure: Not Held
