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Newcastle Minerals Ltd A.NCM


Primary Symbol: V.NCM



TSXV:NCM - Post by User

Comment by sclardaon Sep 15, 2021 5:17pm
145 Views
Post# 33866144

RE:Is This a World’s Record?

RE:Is This a World’s Record?marnesue wrote

7360 g/t gold and 4400 g/t silver over 1.0 meter.   Can anyone confirm?

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 That is what the news release stated.  That 1 meter of 7360 gram gold per ton was part of a 15 meter core that averaged  493 grams per tonne over 15 meters.

Considering that the average underground gold mine is averaging i believe under 6 grams per tonne 493 grams over 15 meters seems is not bad. 

To put it into perspective 1 tonne of 493 gram gold would be worth aprox. 29 000.00 US dollars. A typical tandem dump truck holds 14 tonnes. So one dump truck load of that ore would be worth aprox.   $405 000.00 US dollars or aprox. $500 000. 00 Cdn. 

Two tandem loads of that ore is worth  $1 million Cdn. 

Currently  PVGs mill grade is around 8 grams per tonne. If PVG  was mining 493 grams per tonne gold and feeding the 3500 tonne per day mill at that grade their current aprox.  1000 ounces of gold per day  production would go up to aprox. 60 000 ounces  per day.   

That means while expenses would stay roughly the same PVG would go from producing aprox.  $1.8 million US per day in gold to producing aprox.  $ 108 million US per day of gold.

Of course that is not likely to happen but shows the huge amount of increase in cashflow that happens with very high grade gold.  Even if PVG can substitute  10% of this high grade gold even at an average grade of 30 grams per tonne gold to their current 8 gram 3500 day production by my calculations  it would increase the current cashflow of aprox, $350 million Cdn. per year to aprox. $575 million Cdn. 

The good thing is they seem to be finding  a lot of these monster grades in different locations and at much higher than 30 grams per tonne average.  

PVG already swimming in cash will soon be drowning in it.

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