Ore processed was 697,634T, for production of 703,470oz. However, in-circuit oz increased by 10,130, and recoverable silver from the stacks increased by 215,090, from 540,000 to 755,090 ounces.
So ounces recovered and recoverable totalled 703,470 + 10,130 + 215,090 for a total of 928,690oz, which at 31.1gm/oz = 28,882,259gm, or 41.4g/t.
They work on a recovery of 65% (page 5), which puts the head grade at 64g/t. The reserves and resources figures give average grades of 56g/t and 52g/t respectively, including about one and a half years' ore at 78g/t and 77g/t.
That richer ore would give a recovery rate of 50g/t, a 22% increase of silver recovered for the same effort (but increased cyanide). So we could see a 18% decrease in costs per ounce from the richer grade - for a couple of years. After that the cost per ounce would increase 69% as the average grades of 46g/t and 45.3g/T for the remaining reserve and resource are mined.
If we mine 10koz for $200k, that's $20/oz. 12.2koz for $200k is $16.39/oz, a decrease of 18% from $20.
46g/t at 65% recovery is 30g/t, a 40% drop from 50g/t 40% drop from 12,000 is down to 7,200.
7,200 koz for $200k is $27.77/oz, which is a 69% increase from $16.39/oz, and a 39% increase from the current rate. The 10koz and the $200k are just examples to show how the %s move.
Production cost: it's all about about grade and recovery.
AYN Price at posting:
0.3¢ Sentiment: None Disclosure: Not Held
