RE:RE:2019 Denver Gold Forum Presentation Sherry35,
On mining cost per ounce of gold production, I estimate that for Q3 Bjorkdal had one month of open pit production for 40,000 mt, 210,000 mt from underground, and 130,000 mt from the low grade stockpile. Total mining cost $6.375 million USD or $414 USD per ounce with estimated gold production for Q3 of 15,400 ounces.
For Q4 2019 assuming 200,000 mt of ore comes from underground, and 160,000 mt of low grade stockpile, I estimate total mining cost at $5.59 million USD or $348 USD per ounce produced with total gold production of 16,000 ounces. That is assuming recovery stays the same at 90 percent.
For 2020, if 1 million tonnes of ore comes from underground, and the average underground ore grade is 2.34 g/t, then quarterly gold production increases to 18,500 oz/quarter
If gold grade were to increase to 3.37 g/t, then quarterly gold production would increase to 26,000 ounces with a slight increase in gold recovery to 91 percent. Higher grades
lower the weighted average mining cost to $261 USD/oz.
At 4 g/t under this same scenario, quarterly gold production increases to around 31,500 ounces and expected gold recovery increases to 93 percent.