RE:RE:BreakthroughReflecting on Taguas and Veladero, I must say Orvana geologists and management are eaither smart or astute. The cost in Veladero is very high, around $1700 because, among other things such as remoteness and altitude, they also process both oxidized and sulphate giold. The cost of oxidized ore is roughly 1/2 cheaper or around $5 per ton.
Orv wants oxidized gold production within two years and they need to convert 1 mill or so inferred ounces of oxidized gold into measured and indicated category. Let's say they convert 1 mill inferred into 500,000 ounces in M&I category or 10 years of 50,000 ounces annual production.
Next big advantage for Orvana is the Oxidized project in Bolivia and especially the experience and knowledge gained with its oxidised, low grade tailings. I suspect one reason for the delayed introduction of the OSP is the advancement at Taguas.
All and all, so far so good