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Yukon Nevada Gold Corp T.YNG



TSX:YNG - Post by User

Post by romaraon Apr 16, 2009 7:56pm
183 Views
Post# 15924867

Dickson Quote

Dickson QuoteHere is part of a quote from Graham Dickson from the Elko News Mining Quarterly

Dickson said "current plans are to produce roughly 2,000 ounces ofgold a week for the next year and to produce 90,000 ounces of gold fromnow until the end of this year from the 800,000 tons of ore instockpiles, including ore from Newmont Mining Corp. operations thatJerritt Canyon had contracted to mill"

If we take a $850USD POG times the 90,000 ounces for the rest of the year......that's cash flow of $76,500,000 USD

Now we know Golden Eagle is working on a percentage of the produced gold. Which I read to be 20% of operating cost... so I take it Golden Eagle will get 20% over and above the cost of operating mill. If we say it cost $400USD a ounce to produce...then Golden Eagle will get $80.USD per ounce operating profit.

That still leaves three to four hundred  dollars per ounce profit for YNG....I hope I am right on this

Under a pre-operating provision in the Agreement, Golden Eaglecurrently has 18 full-time employees on-site at Jerritt Canyon,including its Chief Operating Officer (COO), Blane W. Wilson, aswell as a number of part-time employees at any given moment.Queenstake USA is currently funding all costs of the maintenanceand regulatory compliance operations during the pre-operatingperiod and is required by the Agreement to pay Golden Eagle anadministrative fee of 20% of those costs. However, due to theunexpected length of time involved in the pre-operating period, andin solidarity with Queenstake USA, the Company has agreed to acceptan 8% administrative fee on operational costs for the time beingand defer the balance of the 20% fee until the mill commences fullprocessing operations

If anyone has anything to add to this ....please do.....Richard
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