Barkerville Gold Mns Ltd BGMZF

RE:RE:RE:RE:[2014 Revenue/Cash Flow from QR]

[yaponski]

dkolish01 wrote:
This is the average cost per ounce. Yes average cost. Remember the 6 gpt and 12gpt  is an average also. The important thing to remember the average in the industryy  is running 1200 per ounce and that why we had a lot of closure last year of non profitable mines. Cost go up not every metric ton has gold.

The higher the gpt the lower  the cost but this is an average production cost. What you are saying is
location specific what I am saying is the average across the mine. Best for shareholder across the mine. The company will ignore areas with no gpt but they are going to have to drill and blast to get to area that have gpt. Our cost are  low and yes some area are going to be very profitable to mine other areas are going to be very expensive. Certain areas prohibitively. A lot of mine are closing because they have gone from expensive to prohibitive as the price of gold fell. Cost will change over the lifetime of the mine as areas are mine out and new areas are developed. I am very happy at this 1000 per ounce. We are milling and profiitable. A lot of other mines are on care and maintenance waiting for the gold  price to rise.  Yes it expensive but at 1300 an ounce we are makiing 300 an ounce. It profitable at this level.

dkolish,
One word of caution. QR ore has been processed through the mill and is a known quanity.

BL ore has NOT been run through the QR mill as far as I can tell. So there might be some recovery issues to be worked out -- with time and money many recovery issues can be solved -- but there you have time and money again...

Recoverying gold from real ore is a a wee bit harder than running numbers through a spreadsheet.  Just saying, it will be interesting to see the first runs from BL ore through the mill.  But wait, are absolutely all of the required permits in place to exploit BL ore via the QR mill? Just asking.