RE:Golden opportunities in TimminsThanks taco for this insightful interview !
I found interesting that they are in talks with Northern Sun Mining. This company, previously Liberty Mines and focused on nickel mining, is changing his business to be focused on gold mining. After a share consolidation of 50:1 and wiping out their debt of around 120 mios, they changed their name, are currently raisong equity for 30 mios and have a bought deal with QMX to purchase the Snow Lake Mine and mill (2'000 tpd) in Manitoba (2'000 kms from Timmins).
They still have their Redstone Mill which was closed in 2012. I could localize it :
https://maps.google.ch/maps/ms?msid=200980991821603298647.0004eaadb2f47da0f49d9&msa=0&ll=48.423733,-81.149139&spn=0.37228,1.056747
It is 35km from Whitney. Such a haulage distance is still fine even for an open-pit mining. For instance St Andrew Goldfields is hauling ore from Hislop open-pit mine (2.11 gpt) 45km east to its Holt Mill (3'000 tpd).
Northern Sun Mining is currently rehabilitating the mill:
The Mill was designed with two processing circuits which can operate in tandem at 1,500 tonnes per day ("tpd"), but with the flexibility to operate independently processing two different ore types, each at 750 tpd. In 2014, the Company intends to re-open the mill to offer toll milling services to a variety of deposits in the Timmins Camp and general area.
Not many ore to work with just around, so Temex should be very interesting for them as they plan to be a producer of gold in 2014. I tried to outline various scenarios based on existing data:
|
Conservative scenarios |
Optimistic scenarios |
|
Open pit |
Underground high grade |
Open-pit & underground (mixed) |
Open pit |
Underground high grade |
Open-pit & underground (mixed) |
| Milling capacity (tpd) |
750 |
750 |
1500 |
750 |
750 |
1500 |
| Number of working days per year |
350 |
350 |
350 |
360 |
360 |
360 |
| Average gpt |
2 |
4 |
3 |
2.5 |
5 |
3.75 |
| Metallurgy recovery |
95.00% |
95.00% |
95.00% |
96.00% |
96.00% |
96.00% |
|
|
|
|
|
|
|
| Production ounces |
16089 |
32177 |
48266 |
20903 |
41806 |
62710 |
|
|
|
|
|
|
|
| Gold price |
1300 |
1300 |
1300 |
1400 |
1400 |
1400 |
| Cash cost |
700 |
900 |
800 |
600 |
800 |
700 |
|
|
|
|
|
|
|
| Revenues 60 % |
12'549'194 |
25'098'387 |
37'647'581 |
17'558'710 |
35'117'419 |
52'676'129 |
| Cash cost 60 % |
6'757'258 |
17'375'806 |
23'167'742 |
7'525'161 |
20'067'097 |
26'338'065 |
| Gross margin 60 % |
5'791'935 |
7'722'581 |
14'479'839 |
10'033'548 |
15'050'323 |
26'338'065 |
Next months should be very interesting with Temex, it seems Christmas is already here with give-away cheap shares ;-)
Cheers,