RE:RE:What explains the unusually low cash costs?Los Filos is located in Guerrero State, Mexico, and commenced production in 2008. Mining operations in 2024 involve three open pits (Los Filos, Bermejal and Guadalupe) and one underground mine (Los Filos). Crushed and ROM ore from the various deposits is processed by heap leaching.
Last quarter results:
Average open pit gold grade 0.67 g/t.
AISC $2,274/oz.
The feasibility study says:
"The LOM plan shows average recoveries of 55% from heap leach processing and 88% from the CIL plant. LOM production averages 280,000 oz per year commencing in 2023, with peak production averaging 360,000 oz per year from 2025-2030. LOM AISC averages $1,081/oz of gold sold. A substantial decrease in AISC from mid-2024 correlates with the increase in ounces produced as a result of the commissioning of the CIL plant."
Songjiagou is not producing much gold yet has great 94% recoveries quarter after quarter and shockingly low AISC for the avg grade processed.
Actually, the Songjiagou grade is lower than I listed in the last comment because it gets bumped up from the underground operation. The open pit avg grade in the last quarter was only 0.49 g/t.