GREY:GRFJF - Post by User
Post by
loantech1on Mar 27, 2007 1:45pm
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Post# 12497856
Wgdf/wgi May Have A Bright Future And Higher
Wgdf/wgi May Have A Bright Future And Higher Production Numbers.
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Some rough numbers on WGDF/WGI. They are permitted to move 60,000,000 tons of dirt per year. They have an average strip ratio of 2.7:1. So you are left with about 22,222,222 tons of ore. WGI may have used a number of about 76% recovery for the gold and may have used about 35% for recovery of the non-0xide gold ore in their BFS. But But! Newmont's metalurgy tests showed recovery of over 80% including the non oxide.See WGDF's corporate presentation.
https://www.westerngoldfields.com/i/p...esentation.pdf
The average grade is .017 ounces per ton. So 22,222,222 tons of ore (guesstimate)times .017 ounces leaves 377,777 ounces of gold with an 80% recovery (guesstimate)= 282,287 ounces produced per year not 165,000.
If these numbers are correct and we use 650 gold instead of 500 gold in their base case WGDF may have a very bright future.
650 gold price using the lower production numbers per year equates to about a 42% IRR. Would be much higher with the higher production numbers.
Do your own DD these numbers are for fun only.