RE:RE:RE:RE:RE:RE:RE:woke up last nite...and started crunching some numbers.. Extract from bottom of Page 206 of PEA is posted below. At $1,411 the project becomes negative. PEA was done in 2012, so what are current day costs? The deposit is not good enough, that is why Frank resorted to the Rolling Start to try and salvage something from deposit:........
It can be seen that the gold price and the open pit operating cost have the greatest impact on project NPV. The project becomes negative when gold price drop by 6.0% and when open pit operating cost increase by 14%. Overall, the project is sensitive to each of the major variables. This sensitivity analysis clearly demonstrates that gold price needs to remain over 1,400 US$/oz troy (at an exchange rate of 1.00 US$:CDN$); in order to keep the project economically attractive.