TSXV:NORA.H - Post by User
Post by
blue_seaon Aug 11, 2011 11:12am
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Post# 18930823
to the figures
to the figuresokay, just looked at some figures and the highlights
-- Conventional surface and underground mining of 18 variably-oriented
distinct vein structures.
-- Estimated average annual production of 6.8 million ounces of silver and
11,800 ounces of gold at a cash cost(1) of $11.84 per ounce of silver,
net of by-product credits.
-- Mine life of 12 years.
-- Pre-production capital and development costs of approximately $270
million.
-- After-tax net present value at a 5% discount rate of $315 million
(assuming prices of $25.00/oz silver and $1,250/oz gold).
-- The Project generates a 24.3% IRR assuming the above metal prices.
-- 5,000-tonnes-per-day conventional cyanide leaching plant producing a
silver-gold dore.
Personally cash cost of $11.84 per ounce of silver, net of by-product credits looks high in comparison to some other stocks I own. The internal rate of return of 52.7% with a payback period of less than 2 years is quite good for a project of that size. So this is obviousely a good mining project. When the market don't react to such figures for a project in that stage then to what ever?