Post by
Farquar on Jul 22, 2020 4:09pm
The importance of mining Spargos
Just to get a general idea of what kind of money can be generated just by mining the 785,000 tons of indicated at 4.4 g/t.. at spargos deposit. At full capacity running the 785,000 tons of ore through the mill would take about 6.7 months and would generate approximately 112,000 ounces x 95.5% recovery = 107,000 ounces ..... The AISC would be close to $500/ounce ( perhaps overly optimistic). If the average price of gold was $1900/oz , you would get a net profit of about : $1400 USD /oz x 107,000 ounces = $149,800,000.00 USD or about $200,000,000.00 CDN Not bad for just under 7 months of production.. Karora's due diligence seems to indicate that the historic drill results are legit..There is also the inferred resource of 151,000 tons at 4.1g/t = 19,000 ounces All open pit! If spargos can provide let's say an overall deposit of 1 million ounces at 4.4 g/t, we are talking incredible profits going forward, just from this deposit alone ...