Estimated Production of QW Open Pit OreAn estimated 1 million tons of open pit ROM ore per year has been assumed at grades of 5 grams per year and alternately 10 grams of ore , the former considered conservative imo.
Intillegent ore sorting such as Gamma X Ray separator , now established and capable of reducing milled ore by 50% relative to ROM , by elementary computations , would reduce 1 m tons ROM to about 650,000 tons per year milled.
Head grade would increase to 7.5 grams and to 15 grams per ton in this concentrated ore sent to the mill.
Recovery is estimated to be 95% and POG of $2500 per ounce in $C.
Integrated together, annual gold production of QW open pit ore would range from 150,000 ounces per year ( Revenues = $375 million CAD per year ) to 300,000 ounces per year ( Revenues of $750 million) , based on 1 million tons of ROM QW open pit ore .
Assuming AISC of &1250 CAD per ounce, annual cash flows would be in the $180 million to $350 million cad per year,
Toll milling of this ore is available from 1.1 m tons of excess milling capacity of nearby two mills , one of whom investors is NFG.
The impact of this early mining of QW ore is that such a move would generate early and abundant cash flows to NFG which would fund the full exploration and development of the QW gold resources without having to invest substantial capital for a gold mill and milling labor.