I think you're spot on dosco.  Here's the link to the PFS done on the QR mine Dec. 16, 2009. 


Considering that it used gold prices of $850 per ounce, and it was still marginally profitable, it should be more than profitable today with gold trading over $1650 per ounce.  Of course costs have increased as well, but not as much as the price of gold IMO.  atb




Economic Criteria




· 700 tonnes per day of ore

· Recovery of 93% gold with no credits for silver

· Exchange rate 0.90 USD = 1.00 CAD

· Metal price of US$850/oz Au

· Revenue is recognized at the time of production


· Initial capital cost is $3,300,000 (including mill refurbishment, mobilization

and working capital, excluding stope development, raising of the tailings dam

and grouting of tailings dam to lower seepage )

· Stope development prior to the start of production mining is $3,002,000

(occurs over the first 3 months of mine life) and carried as a mine operating


· Shutdown Costs incl. Reclamation is $2,582,000 (including mine

demobilization, mill shutdown, reclamation activities, grouting of tailings

dam to lower seepage and post-closure monitoring)

· Working capital is $883,000 (estimated at average operating expenses per


· Working capital and mill asset recovery is $1,800,000 (this is considered a

positive value to the firm, as working capital can be recaptured and

equipment from the mill can be sold at the end of the mine life)

· Average operating cost / tonne of ore over the mine life is $61.41


The project has an estimated cash operating cost of $US 680 / oz Au. With capital, the total

cash cost is estimated at $US 821 / oz Au.


The project Base Case shows a before-tax internal rate of return (IRR) of 55% and a Net

Present Value (NPV) of $2.95 million, discounted at 5%, as shown in Table 2. Payback of

the initial capital cost of $6.5 million (including all works before revenue is generated and a

contingency amounting to 10% of costs) is 10 months.