Tad wrote: edx .... Just some quick very rough calculations ....
At $1200 gold price and average grade of 5 gpt :
$1200 / 31.1 gr/oz = $38.58 per gram
$38.58 x 5 gram = $192.92 per tonne ore value
$192.92
- $80.00 Mining cost per tonne
$112.92
$30.00 Processing cost per tonne
$82.92
$10.00 Waste rock haulage per tonne
$72.92
$5.00 Administration cost per tonne
$67.92
$18.75 Haulage from DGF to Mill per tonne ($0.07 / t / Km, or ~$450 per 24 tonne truck)
$45.17 per tonne net of costs
$45.17 X 400 tpd = $18,068 net revenue before tax and royalty per day for first two months
$45.17 X 750 tpd = $33,877 net revenue before tax and royalty per day after two months
$18.068 X 90 days = $1,626,120 per qtr before taxes and royalties
$33,877 X 90 days = $3,048,975 per qtr before taxes and royalties
65% share of sales revenue for DMM and 35% share for Green Oil with equal share of costs as well, according to the agreement.
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From this morning's announcement ....
Within two months of commencement of mining activities, Green Oil must excavate a minimum of 400 tonnes per day and 750 tonnes per day by the beginning of the third month. Green Oil has the right to mine open pitable surface material only and Dynasty retains the right to explore and develop any and all underground mineralization on these three concessions. Dynasty retains all rights to mineralized material developed underground within or beyond the three year term of this agreement.
Once government approval has been granted, Green Oil will begin construction of two roads,, under the direction of Dynasty, connecting the project area to a main transportation route. Construction will begin no later than 15 days following Dynasty's making the requisite reclamation bond payment to the Ecuador government. Green Oil will bear the cost for the road construction as well as for all development, mining and transportation of mineralized material.
The terms of the arrangement specify that Green Oil will begin exploitation (open pit excavation under the direction of Dynasty) within 60 days of commencing road construction. Green Oil will be responsible for transportation of mineralized material from the point of excavation to the Zaruma processing plant, approximately 180 km away. Green Oil is also responsible for securing the mineralized material during transport and tracking truck loads via satellite from the point of excavation to the Zaruma mill.
Green Oil's compensation will be based on the cash equivalent of 35% of refined gold sales and 10% of refined silver sales from the concessions defined under this agreement only using international pricing of both commodities for payment calculation. Green Oil will cover the proportional cost of transportation and refining costs as per the above percentages.