High River Gold Mines Ltd HRIVF

question

[topoftheridge]

hopefully not a dumb question,

cash costs at Berezitovy went up from $750 to $950 per oz this quarter,

is that because of costs and "down time" related to the upgrading of the mill?

If so, this is great news!

[bart_dc]

hi topoftheridge,a mine has both fixed costs (depreciation of machinery among other things) and variabel costs (chemicals for exemple).If less rock is processed the variabel costs will be lower, in line with the lower volume so this would have no impact on the cost/ounce.The fixed plant costs however are a fixed amount per month which can be calculated per ounce produced.If half of the normal

[topoftheridge]

thanks bart_dcas long as the $950 per oz is temporary and will in fact lead to lessening costs, it is good news....and 3 cents in a bad quarter is still vastly better than last year Q3.thanks again.stay long....