Post by
javaman12 on Dec 01, 2020 11:47pm
Abcourt Mines, Now A Lean And Mean Machine!
Cost of sales has been reduced by over $400,000.
But the company has taken on, a few more staff. Why? Because, Abcourt Mines is growing!
At the Elder mine, the company is presently mining ore near the 3.45 g/t cut-off grades. With the gold price as high as it is, the company has still managed, to make a considerable profit!
Clearly the higher gold price has enabled the company to pursue a strategy of developing new levels at the Sleeping Giant mine. The company has wisely decided to take advantage of this new possibility!
The Elder mine, has much more, still to contribute.
Once the new mineralization has been accessed at the Elder and at the Sleeping Giant Mines, the mill will be fully utilized, with some of the company's better grades of gold.
But we also know that the company can now, also profitably mine, lower grade ore.
And because of the recent, higher gold price, we also know that the former cut-off grades at both mines, may now be lowered. The new higher gold price could have altered the equation.
Some of what may have been previously considered incremental ore, at the Elder and Sleeping Giant mines, may now be considered a part of the valuable mineralization. The company knows how to do the necessary calculations.
It will be easy, to fully utilize the great potential of the SG mill. There should be many years of profitable production, well into the future!
The present high AISC is not surprising when the company has two mines undergoing a period of significant, positive transformation. It costs a lot of money to fully develop, new levels of access, at two different mines, when only one, is currently producing.
These new efficiencies will lower the the company's AISC.
Every dollar counts, on the bottom line!
With two operating mines,
This company is going to make a lot of money!
All the best! Java