Jim's breakdown on production costsThings are looking better and better for TNX/TRE, especially considering production costs as outlined by Jim himself on jsminesite.com for surface producers ($22-$75 per oz). So even at 2 g/t TNX will be producing over 1 oz/h, with the 20 t/h plant. Just think what kind of numbers will be generated when the get those multiple 100 t/h plants get up and running. TNX should not have to do many more equity financing.
....Steve
From
https://jsmineset.com :
It is my feeling that gold is headed on this move to $1650 with its normal drama.
Let’s think about what this means to gold producers.
With gold valued at $1650 per ounce:
- 500,000 ounces = $825,000,000 less the cost of mining.
- 1,000,000 ounces = 1,650,000,000 less the cost of mining.
- 2,000,000 ounces = 3,300,000,000 less the cost of mining.
Costs:
- Underground average costs are approximately $500-$600 (assuming noderivatives or derivatives covered as international and Canadian GAAPrequires derivative losses be expensed to the specific property).
- Open cut average costs are approximately $300 (again, assuming no derivatives or derivatives covered).
- On surface average costs are approximately $22-$75 (again, assuming no derivatives or derivatives covered).