RE:RE:one big problemHendrick given its depth below overburden will likely be a Block Cave mine,
Early stage assessment of using block caving for a deposit Ore value that is not only able to cover operating costs, but also the relatively high initial capital costs, and extended preproduction periods, as compared to most other methods. As a minimum, the ore value should be two to three times the site operating costs (mining, processing, and general and administration costs).
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- The block-cave mining method is capital intensive and can cost anywhere between $2 and $10 billion. While that is comparable to the cost of starting an open-pit mining operation, block caving takes significantly longer, usually in the 15- to 20 year range
- Based on those numbers a minimum deposit should be 3 million oz if the minimum $2 billion is used for start up cost on Hendrick. and gold price is around $2000 an ounce. There may be a ways to go yet but a 43-101 should give one some idea where they are at. If they keep encountering 300 meters of 1+ gpt, 3 to 5 million ounces or more could be possible.
- Near surface gold in mineable amounts is also found in GP and Morris. Hurd is also waiting on results. Galloway could be a monster in the making.
- Plenty of existing miners, smelters access and close infrastructure also gives the Hendrick zone a leg up as well.