Post by
TheRock07 on Jul 18, 2009 7:07am
New Management/ 100,000+ oz year
The re-opens next week with a budgeted thruput of 3300 tons per day and will produce 2000 oz per week at a cash cost of $300 per oz.
There is plenty of high grade gold , as the Company reserves and resources at Jerritt Canyon, not accounting for 2008 mining and depletion, are 717,300 ounces of gold in the proven and probable categories and 1,961,100 in the measured and indicated categories as reported in the April 16, 2008 NI 43-101 report.
Cash flows will be of the order of about $75 million per year ( C$ ) which is quite amazing for such a penny gold stock.
Upside production above that level is possible , as the mill facility is currently licensed to treat 4,320 tpd with an overall potential capacity of 6,000 tpd .
The share price should march briskly forward once the mine begins production next week..
Comment by
HardRockMiner3 on Jul 18, 2009 4:07pm
Your post made me laugh, especially the part about plenty of high grade gold, & once the mine begins production next week. If you took all the gold out of the ore that they have & put it back in half of that rock, it would still be low grade.
Comment by
jimvicki3 on Jul 18, 2009 4:16pm
Hardrock,Do you think the production costs of the oar would still be about $300. an oz.?
Comment by
HardRockMiner3 on Jul 18, 2009 5:17pm
Maybe for the ore on surface already, but even that sounds low. Put contractors in the mines & watch that number multiply. Not sure a contactor would risk dealing with this group given the history, unless their contract was too good to be true. Then watch history repeat itself & we'll all be surprised.