RE: PoO, conduct pre-construction preparation of t Johan, tx for the calculations and hope that this (3rdmay2011) still stands!
I red back and last CMB research (may 2012) by marketbyscoris seems to become reality finally.
https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=31107883&l=0&r=3&s=cmb&t=LIST
Currently, PBI has completed the initial development drift and is finishing the raise to the high-grade zone. The last two rounds produced 50 tons per round and demonstrated grades ranging between .5 to 1.0 ounces per ton gold. The production goal of the Radcliff Mine is to sustain 100 tons per day and to stockpile an initial 3000 tons for the Bishop Mill start-up. It is anticipated that ore from the Radcliff Mine will provide 100 percent of the Bishop Mill capacity feedstock from the high grade zone for the next 3 years.
couldn't find the "old" calculations but with above data that looked pretty interesting.
https://www.bullionvault.com/guide/gold/Gold-mining
Gold Mining - Extraction and Purification#
Because of gold's inertness some 80% of gold within ore is in its elemental state. There are several processes used in gold mining for extracting, and then purifying it.
Amalgamation is a mercury based process which works because of gold's willingness to be dissolved by mercury. The mercury is applied on an ore, picks up the gold, and the resulting amalgam is distilled, with the mercury being boiled off to remove it. Mercury is highly toxic and therefore environmentally sensitive, making the industrial plant to perform this type of extraction expensive.
The most important purification process in gold mining is cyanidation. Sodium cyanide solution in the presence of air causes gold to enter into solution. Good quality ores give up their gold under cyanidation in what is called vat leaching. Lesser quality ores require heap leaching, which involves huge piles of ore being repeatedly re-sprayed with the cyanide solution over a prolonged period.
Relatively raw gold is purified in two main ways. The cheaper first stage of purification is the Miller process which uses chlorine gas and reaches purification of 99.5%, and then there is the more expensive Wohlwill process which electrolyses gold to purities of 99.99%.
Gold Mining - Stocks#
Gold Mining stocks are a popular way of investing in gold - albeit indirectly.
Advantages of gold mining shares
- The perceived advantage of investing in gold mining shares is that their value is usually more sensitive to the price of gold than even a gold bar. This is because gold mining shares are valued on the basis of their anticipated profits through the life of the mine, and these depend on the reserves, and on the relationship between gold mining production costs and the anticipated value of the gold extracted.
- Suppose a gold mine has 1,000,000 ounces underground and the above ground value is $1,000 per ounce. If the production cost is $800 per ounce the mine will make $200,000,000 over its life. But if the gold price rises by 20% to $1,200 the mine will make $400,000,000 overall. This demonstrates a 'gearing' effect of 4 times - i.e. for a rise in bullion of 20% the share will rise by the 20% plus another 4 times 20%, i.e. 100% (all other things being equal, which they rarely are).
Of course the flip side means that these gold shares would fall five times faster on a declining bullion price.