OTCPK:SPVEF - Post by User
Post by
nilyabon Dec 23, 2018 10:36am
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Post# 29151757
Good article mentioning AGB on Stockhouse
Good article mentioning AGB on Stockhousehttps://www.stockhouse.com/opinion/independent-reports/2018/12/21/how-to-profit-from-low-grade-gold-mines#jZpTziWlSGThoVbt.99
Title: How to profit from low-grade gold mines.
Here is an extract of what the author says, which is very favourable to AGB: A good example is Nova Scotia, where a long history of small-scale high-grade underground mines never turned a profit. No one thought it was possible, but Atlantic Gold (TSX-V:AGB) has shown that open-pittable, disseminated gold is not only possible but a highly profitable business in Atlantic Canada. Its flagship Moose River Consolidated (MRC) project - the first open-pit gold mine in Nova Scotia - opened just over a year ago.
The mine plan entails a very low strip ratio (0.76:1), which means every there is very little waste ore to help keep costs low and gold production high. At full build-out AGB expects to produce about 200,000 ounces a year.
At AISC of $528 an ounce at today’s gold price of $1,250/oz, Atlantic Gold’s profit margin is a remarkable $717/oz. Unlike the gold majors at the top of the mining cycle, whose mantra was “more production”, AGB is running the MRC mine like a business - keeping costs in line with revenues. Moose River generated profits of $6 million in the third quarter.
Along with a low strip ratio, the other factors helping Atlantic Gold control costs are: the mine’s close proximity to labor, suppliers and the airport; a 1.5 g/t grade; and ease of gold recovery. In fact, Atlantic Gold is currently the lowest cost gold producer. The highest-cost mid-tiers have AISCs of between $1,200 and $1,300/oz.
Read more at https://www.stockhouse.com/opinion/independent-reports/2018/12/21/how-to-profit-from-low-grade-gold-mines#8CxRxOTvSFGFvRYp.99