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SNIPGOLD CORP V.SGG

"SnipGold Corp SnipGold Corp is an exploration stage company. The Company is engaged in acquisition and exploration of mineral resource properties in British Columbia, Canada."


TSXV:SGG - Post by User

Bullboard Posts
Post by DetVicMackeyon Sep 23, 2010 11:44am
419 Views
Post# 17483893

Harsh Reality

Harsh RealityWas in @0.31 and went out @0.30. Given the new PEA, I tend to agree with oneVulture in that the economics for a mine aren't that attractive imho. Although more tonnes would be processed during a LOM of 38 years vs 19 years, production output per annum falls ~25% than previously estimated due to lower grades used. About 46koz Au production is averaged over the LOM with cash costs of $98 net of byproduct credits. With gold at $1250, the gross margin is ~$53M per year but initial capex is ~$231.8M. This mine would make money over time, but the current economics suggests not fast enough for mid-tier or seniors to be jumping in. More PPs are likely as this project will take more time and I think there are better places to park speculative money for the time being.
Bullboard Posts