RE: RE: Nugget effect holes: calculation tool P24: "So? You can mine down to a 0.5 g/t gold cut off grade and recover it at 95% plus. Not sure what your point is. ... It is still 3.21 g/t gold over the full 150 meters. They open pit that and take it all and the head grade of the full width = 3.21 g/t."
Prospector24, my point is, that with these nugget effects you increase your strip ratio significantly (compared to fairly equally distributed intervalls), especially with open pit.
Because you have to move a lot more waste material to get one ounce of gold, which significantly increases the mining costs.
That´s why a lot of institutional investors have increased their calculation base to 0.7 + gpt cut-offs.
I think, you will find that your 0.5 gpt cut-off will be thrown out of the window for a long time, if we keep seeing a continuing negative market and cost development.
FANTOMAS