Metanor Resources MEAOD

Barry Ore Trucking Economics

[JRaffles]

Assumptions:-

• The economics of trucking ore from Barry to the BL was uneconomic when gold was ~ $1200 and due to fuel & mill operating costs, this would probably still be uneconomic.
• When the BL mine reaches full budgeted operating capacity of 60,000 per year, the mill will be operating at only two thirds capacity, but all the fixed operating costs of the mill will be absorbed by BL production.

What, therefore could the economics of trucking ore to BL be, when BL is in full production? 

 

• 100% of BL production could be processed at the mill working at 1250 tpd for two thirds of a week.
• Barry ore could be processed for two days a week, at only the mill consumable cost. All mill operating costs would have been for by BL output. Therefore, if Barry ore were to be trucked in Q2, this could be economic, as Barry production would only have to finance trucking costs together with a minimal mill consumable expense.
• SSL are only interested in receiving 20% of production from BL output.  If the maximum BL production could be processed by the mill at the full 1200 tpd for two thirds of a week, then they will still receive their max gold output from BL.

A mill, similar to any machinery, is probably more efficient if operated at the designed output level. 

Since Metanor has already paid for additional plant to achieve 1250 tpd, then it would seem to be worth reviewing the economics of Barry trucking from H2 2012….. who knows, gold may then be over $2,000…..