question for expertsWhen a read the News I was happy but at the end of the NR I saw something special and it's said like
with respect to that deposit, and (v) if and when the Croinor gold project becomes operational, that the price of gold will remain no less than $1,200 per ounce during its operating life. So If I understand well that mean if the price of the gold go under 1200 per once, the profit gonna go down. But in another news they said
Laval, Quebec, July 15, 2009 - First Gold Exploration Inc. (the "Company" or "First Gold") (TSXVenture Exchange: EFG) (Frankfurt Exchange: F12) and X-Ore Resources (TSX Venture Exchange: XOR) are pleased to announce the filing on Sedar of Golder's Preliminary Economic Evaluation (Scoping Study) on the Croinor gold project located near Val-d'Or, Quebec. The study was prepared by Francois Chabot, P.Eng under engineering firm Golder Associates and confirms that the Croinor gold deposit has the potential to be an economic underground mining operation with production achievable within one year (see release of May 26, 2009).
The scoping study highlights the following: - Production of approximately 35,000 ounces per year at a cash cost of US $492 per ounce (Canadian-US exchange rate of 1.2)
- Pretax internal rate of return of 205 per cent at US $850 gold price (Canadian-US exchange rate of 1.2)
- Total capital investment of $11 million
- 10-month pre-production period
So why 1200 per once ?