Post by likeike on Sept 19, 2023 18:52:42 GMT
Post by nozzpack on Sep 19, 2023 12:09pm
Enough Shallow high grade Gold to Open pit ?
Earlier, I provided a table which contained mineralized dimensions of the three discoveries which had
very high grades at very shallow grades .
Those three were Iceberg, Keats West and K2.
Their combined surface expression was 391,000 sq meters .
High grade gold was found below 100 meters as well, but lets just take the top 30 meters of these significant discoveries .
At those depths, you could quickly do grade control, send in the production drillers and then have excavators go in and enable the ore to be trsnsported to special X Ray separator which would reduce the head volume by 50 % and increase the grades to be processed by 50 %.
So, we have 391,000 sq meters ** 30 m ** 2.75 = 32.5 m tons contained ore above 30 m of depth.
Techncally, just 3.9 % of this ore will be economic which is 1.3 million tons .
These shallow inersects can be calculated to be about 20 grms per ton, so we have 26 million grams of gold which is about 800,000 ounces above 30 meters .
At $2500 cad per ounce , the gross revenue would be $2 billion .
Divide by 2 to be conservative , and the shallow high grade portions of these 3 discoveries can generate about $1 billion in revenuex over a very short period of 3-4 years.
At such high grades, recoveries will be above 95 % and TPC ( total ProductionCosts ) at $1000 per ounce or less.
Very roughtly, about $600 million in free cash flows.
This is illustrative but NFG is not whistling Dixie in their major trenching efforts at Keats.
They probably know their decision already...
Enough Shallow high grade Gold to Open pit ?
Earlier, I provided a table which contained mineralized dimensions of the three discoveries which had
very high grades at very shallow grades .
Those three were Iceberg, Keats West and K2.
Their combined surface expression was 391,000 sq meters .
High grade gold was found below 100 meters as well, but lets just take the top 30 meters of these significant discoveries .
At those depths, you could quickly do grade control, send in the production drillers and then have excavators go in and enable the ore to be trsnsported to special X Ray separator which would reduce the head volume by 50 % and increase the grades to be processed by 50 %.
So, we have 391,000 sq meters ** 30 m ** 2.75 = 32.5 m tons contained ore above 30 m of depth.
Techncally, just 3.9 % of this ore will be economic which is 1.3 million tons .
These shallow inersects can be calculated to be about 20 grms per ton, so we have 26 million grams of gold which is about 800,000 ounces above 30 meters .
At $2500 cad per ounce , the gross revenue would be $2 billion .
Divide by 2 to be conservative , and the shallow high grade portions of these 3 discoveries can generate about $1 billion in revenuex over a very short period of 3-4 years.
At such high grades, recoveries will be above 95 % and TPC ( total ProductionCosts ) at $1000 per ounce or less.
Very roughtly, about $600 million in free cash flows.
This is illustrative but NFG is not whistling Dixie in their major trenching efforts at Keats.
They probably know their decision already...