TSX:SGR.UN - Post by User
Post by
buzz07on Apr 17, 2007 1:38am
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Post# 12620787
In conclusion:
In conclusion:I using 800 T/D with the Mill on a two week on two week off rotation.
leaves with 20 weeks of production remainig in the fiscal year.
Now: 20 weeks x 14 days = 280 days of production. Therefore
280 days x 800 tons = 224000 Tons of ore. Finally and this is where I get a little confused due to the PR's but I will assume .4 oz per ton.
224000 x .4 = 89600 oz not 50000 oz but if we multiply by .2oz as in one of the PR's the production total is 44800 oz.
Using SAN PR of 50000 oz and multiplying that # by $350 per oz of net SAN should have a net income for the final three Q'S of $17,500,000 or 10.5 cents per share.
The reason for confusion:
Two additional veins with similar structure to the high grade 93 and 98 veins (See press releases dated March 22, 2007, Jan. 18, 2007 and Nov. 1, 2007) have been identified and will be accessed from the 26th level (3900 ft). Production at this mine is currently at approximately 250 tons per day and is steadily increasing towards the planned 400 ton per day rate by the end of the second quarter.
The Rice Lake mill has processed over 80,000 tons of low grade development material to date. As the ratio of tonnage from producing stopes increases, head grades will rise to over 0.20 oz/ton (7.0 g/tonne) this quarter and recoveries will rise from approximately 90% to over 93%.
In conclusion: I think SAN is low balling the figures and I am more apt to using 89600 oz x $350 net = $31,360,000. And then I think I am low balling the price of gold.
With all the exploration I foresee Blue Sky...