Production ratesOnce the equipment is set up, the projected tonnage per day can be multiplied by the average grade recovered from the stockpiled material.
For example, if the mill on site can process 250 tons per day, then we may assume the following estimates in total grams per day.
If we multiply 250 times 2.5 grams, then each day would yield 625 grams or 20 ounces.
If we multiiply 250 times 3.0 grams, then each day would yield 750 grams or 24 ounces.
And so on, if the grade exceeds expectations, then you can do the math.
If the equipment we secure is capable of processing 300 or 350 tons per day, then the numbers increase again and we get even better economies of scale.
Until PHD is actually mining the stockpile, they cannot know what the recoveries will be in terms of grade or the maximum rate of tonnage processed daily. In a rising gold price environment, the profit margins can expand exponentially.
DOC