Banks Island Gold Ltd BKSLF

RE:RE:RE:Presentation

[miningman]

UBC, now I know you are one of two things. Either an academic stuck in lala land of academia or that your sole experience is with open pits. All that NPV , IRR stuff is perhaps relevant at the feasibility study stage when trying to convince the bankers to open their wallets but after that its irrelevant. Every orebody has an average ore grade. Every mill manager can get best recovery with an almost constant mill head. Every time that grade fluctuates away from the average, recoveries drop. You are right that way too many operations mine the hi grade first . and almost all regret it. Take a hypothetical mining company . say in NW BC, that is opening a new mine , with 5 or 6 clearly identified ore zones. Lets call the best one " BOB" . They chose to mine it first. and then thru either bad luck , bad management , poor mill design , poor mining practice . whatever they screw it up. Instead of starting on a lower grade stope and developing their learning curve there , they destroy the economics of the jewelry box. I cant count the 10,000s of tonnes I've mined , and watched the mill guys dump 0.2 ounces per tonne directly into the tailing pond while they get their s**t together