RE: RE: RE: RE: RE: My conclusion and calculation Based on Osisko's reserve estimate - they have a mining cost of $2.19/tonne moved and a processing cost of $5.66/tonne.
However, they have a strip ratio of only 2.28:1 (compared to GBB's implied 5.65:1). GBB's would likely come down if they reduced the cut-off grade (and possibly from more infill drilling), but they have not given us that information (and didn't even explicitly state the strip ratio).
If I use the GBB grade of 1.10 g/t, strip ratio of 5.65:1 and recovery of 94.1%, but OSK's costs, I get a cash cost of $607/oz. [$2.19*(1+5.65)+$5.66]/[(1.10 g/t *94.1%)/ 31.105]
Obviously the deposit size would have to increase substantially to justify a 60,000 tpd operation to achieve these costs.
OSK Data in this press release:
https://www.osisko.com/en/press/2011/03/31/593/osisko-increases-gold-reserve-at-canadian-malartic-to-10-7-million-ounces-total-reserves-up-19-percent.html