Mining Gold, Is It Ore Or Is It Waste? The grade of the ore milled from the Elder mine is not indicative of the highest grade material that Abcourt might choose to mine. Milled ore is often a blend. One must consider the process of extraction that management has determined is in the best interest of the company.
The company has decided is to extend the useful life of the Elder mine.
https://www.srk.com/en/publications/cut-off-grade-the-impact-of-getting-it-right-presentation Mining the cutoff grades or lower incremental grades, in a commercially viable blend with better higher grades, has several important benefits and gives the company various mining options.
It gives the company the needed time to open new levels and develop stopes containing more of the higher grade ore. Good positive cash flow is essential, to maintain the finances of the company, during the period of exploration and new stope development.
It allows the company to better utilize the mill's capacity, by maximizing the mineralized ore sent to the mill.
All mineralized ore has some value, once extracted. The initial mining expense has already been made, in the stopes. So it may still be profitable, to send some of the mineralized waste to the mill along with the more valuable ore.
It extends the Elder mine's useful life while waiting for the ore from the SG mine to become a useful component of the mill's operation.
Once both mines have become profitable commercial operations, the company will have greater flexibility to maximize the mill's total throughput.
Using various similar strategies, and with two operating mines, the company has greater flexibility in maintaining a profitable operation during times of volatility in the gold price. Different grades may be mined and milled.
It also gives the company, the flexibility, to keep the company's two mines operating, for many more years to come.
Management decides what grades are best to mine!
Shareholders only care about the profits that the company needs.
The money will come. But It will take some time.
Remain positive!
All the best! Java