Elgin Mining Inc ELGMF

More Lupin Details

[HonestAbe]

In their latest presentation they now announce some more numbers regarding Lupin restart.

 

 

Previous owner in an older 2008 study estimated capex of $50M.  Expected restart at 1000tpd for 80K+ ounces at $750-850/oz resulting in under one year payback of capital at current gold price.

[boreps]

Abe, What you think about Sabina report? To me a 300 thou. Oz mine with capex 480 mln. sounds very optimistic. In any case Elgin is better risk.

[mtsuit]

"To me a 300 thou. Oz mine with capex 480 mln. sounds very optimistic."   Tonnes of rock to be moved and processed are what drives the capex.  They are only looking at a 5000 tpd mill because the ore is high grade.

[HonestAbe]

Sabina's PEA was probably better than expected since most people probably feared the worse.  Capex is quite reasonable, albeit it is only a PEA and I have seen later FS come up with figures in many cases that no where resembles PEA numbers, and it is only based on a stand alone operation.  If XStrata develops infrastructure at nearby Hacket River then there will be further cost