Post by
nozzpack on Sep 13, 2023 12:25pm
Iceberg Average Intercept Grades
A quick calculation of the average grade of significant intercepts in todays NR is just over 21 grms per ton.
17 of 31 drill holes hit signidicant gold which is a 55 % success rate.
This is a very high success rate, the sampling density index imputing that high grade gold is broadly distributed within the Iceberg deposit.
Although high grade intercepts were present at depth below 250 m, drilling was to sparse to draw conclusions beyond 250 m.
In terms of an open pit mining grade of Iceberg, there might be low grade halo gold enroute to and around the high grade veins , so very good grade control would be requred which would be normal for this type of spatial variability .
Usually dilution would be about 10 %, so you might end up with open pit head grades at 15 grams per ton.
That would be spectacular with cash costs probably below $300 per ounce.
Just a visual review of KW and K2 show similar high grades, so if they intend to proceed to mining in the conventional way..open pit first......we are going to unbelievable cash flows per ounce
Comment by
Daugaard on Sep 13, 2023 2:03pm
Crazy numbers, thanks :) but tell me, you mention below 300$ in cost.. when miners have a open pit with ex 1 gram the cost is maybe 0,8 gram or around 50$ per ounce. Is it more expensiv to open pit mine higher grade?
Comment by
Retiredgeo on Sep 13, 2023 3:11pm
If you are talking by the tonne: Mining costs are the same. Milling costs are the same. I can't speak for refining costs. If you are talking by the oz: All costs go down with increasing grade. Profit margin goes up exponentially with increasing grade. The same holds true for underground mining operations. The richer. The better.