RE:I am posting the following to show something importantbraindeadoldguy wrote: Here is what it takes to build a mine, and all the work that goes into getting there on 1 page.
Take your time and understand this, life of mine, grades of gold, proits based on 1,500.00 gold.
TORONTO, ON – March 29, 2021 - Marathon Gold Corporation (“Marathon” or the “Company”; TSX: MOZ) is pleased to report the results of the Feasibility Study (“FS”) for the Valentine Gold Project in Central Newfoundland (“Valentine” or the “Project”). The FS confirms robust economics for a conventional open pit mining and milling operation at Valentine, with low initial capital cost and high rate of return. The FS presents a mine plan based on the same two-pit and centralized mill strategy first presented in the April 2020 Pre-Feasibility Study, with updated Mineral Resource and Mineral Reserve estimates, refined mine and mill designs supported by additional geotechnical and metallurgical data, and updated capital and operating cost estimates. Mineral Resources, Mineral Reserves, and the Project’s financial analysis have been completed at base case assumptions of US$1,500/troy oz gold and a C$:US$ exchange of $0.75. Highlights of the FS are as follows (all figures are in Canadian dollars and troy ounces unless otherwise noted): • After-tax Internal Rate of Return (“IRR”) of 31.5% and Net Present Value at a 5% discount rate (“NPV5%“) of $600M (US$450M) at US$1,500/oz gold, increasing to 42.2% and $868M (US$651M) at US$1,750/oz gold; • Initial capital cost (“Capex”) of $305M (US$229M) yielding a favourable after-tax NPV5%/Capex ratio of 2.0. Total life-of-mine (“LOM”) capital of $662M (US$496M); • After-tax payback of 1.9 years; • 13-year mine life. 22 months construction and commissioning schedule assuming construction start in January 2022. First gold pour in October 2023; • Average gold production of 173,000 oz/year and $119M of annual average free cash flow (“FCF”) between 2024 and 2033 from the processing of high-grade mill feed, and 56,000 oz/year and $31M FCF/year between 2034 and 2036 from the processing of low-grade stockpile; • LOM Total Cash Costs of US$704/oz and All-In Sustaining Costs (“AISC”) of US$833/oz; • Mill capacity of 6,800 tpd (2.5 Mtpa) based on gravity-leaching, expanding to 11,000 tpd (4.0 Mtpa) in Year 4 based on gravity-flotation-leaching. LOM average gold recovery of 94.2% for total LOM recovered gold production of 1.93 Moz; • Proven and Probable Mineral Reserves of 2.05 Moz (47.06 Mt at 1.36 g/t Au), an increase of 0.18Moz, or 10%, compared to the previous estimate in April 2020; • Measured & Indicated (“M&I”) Mineral Resources of 3.14 Moz (56.66 Mt at 1.72 g/t Au), an increase of 0.05 Moz, or 1%, compared to the previous estimate from January 2020. Mineral Resources are inclusive of the Mineral Reserves; • Inferred Mineral Resources of 1.00 Moz (18.25 Mt at 1.70 g/t Au), an increase of 0.04 Moz, or 4%, compared to the previous estimate;
FYI, this is an irrelevant post on this BB. I know all about this stuff in advanced PFS level 43-101's and 2(P) reserves. I know the difference between reserves and resources. I have no idea why you are posting a Marathon excerpt here since this is apples and oranges. Marathon is an advanced stage explorer which will be a mine. Marathon also has a different deposit type than SIC.
SIC is an exploration play about creating in-situ value of gold resources, which it has done beautifully for many of us here. I also want SIC to be able to do this on one or more of their acquired properties in the near term. Taking one or more of these properties to an advanced stage is a long way off.
So your cutting and pasting that means absolutely nothing and is 100% irreleant here.
GLTA
BC