RE:True NorthThe extract below, taken from the TN technical report, highlights that the tailings recovery can operate on a stand-alone basis for 9 years until 2028.
As you say, it is possible that the C&M costs can be offset by the profitable 9 year tailings recovery cash stream.
If underground mining by San Gold and KDX has proven to be been unviable, why would any other miner buy it as a going concern in today’s POG environment?
Therefore, if the tailings revenue covers C&M costs, perhaps the best strategy would be to hold on to the mine until the POG makes it an attractive investment to a Canadian miner, or alternatively, it can be restarted by KDX. However, since the KDX management experience and profitable resources are all based in Nevada, then an eventual sale may be the best outcome.
https://www.klondexmines.com/assets/docs/2017-05-12-true-north-technical-report.pdf [Page 17 above] Under the previous ownership a percentage of the coarse grained free gold was lost to tailings.
Trial processing of the reslurried tailings has demonstrated that reprocessing of the existing historic tailings can recover approximately 89% of the contained gold.
PM and P&E have produced Mineral Reserve and Mineral Resource estimates on the tailings and the Company plans to supplement the mine feed with historic tailings. The tailings reprocessing operation will be carried out concurrently with the underground mining operation until 2019 and will continue for an additional 9 years until 2028 on a stand-alone basis.