IslandGold, Didn't Frank also say something in regards to Snowden being 3-4 months into some type of feasibility study? Maybe a pre-feasibility on Cow Mt.? You would think with 4 consulting firms working that a lot of reports will soon be available. I think that Mintec is updating the BL-BC vein resource report and also updating the 2009 feasibility study on the BL pit. If you look at this page from the 2009 BL report it is showing high strip ratios and it sounds like technology has taken care of that and I would assume that the updated reports will reflect the grading belt you refer to so they are not trucking rock with so much waste in it to the Q/R. Looks like they are contracting most all of the mining costs and I think also the trucking costs. I am not sure how these contractors get paid, but maybe kind of like a streaming deal where they get paid as the gold is sold so these costs are born by the contractors upfront with the idea they get paid quickly as the gold is sold off. The mining contractor must feel pretty confident about the project to incur these upfront costs and glad BGM is not having to incure them at this point with $ so tight.
TABLE 22: PRICES AND COSTS USED FOR LG SHELLS
Gold Price (2009)
Price Range ($US/Oz) 550 to 1050
Price-Base Case ($US/Oz) 750
Gold (%) 93
Waste to Stockpile $2.70
Ore to Mill Stockpile $6.08
Ore Haulage to Mill $18.51
TABLE 23: SUMMARY RESULTS OF LG SHELLS
$/Oz Strip Ratio
The pit designs with ramps include a starter pit containing approximately one year of oreand an ultimate pit. The ramps exit the pit on the south. The bottom of the starter pit is at elevation 4690 and the ultimate pit bottom is at elevation 4565. The designs were made on 5-ft model bench increments with a 15-ft wide berm every 25-ft of mining height. The geometry of the pit designs and results for the two phases are show below in Tables 24 and 25. The tonnages reported are proven and probable reserves. Plan views of the starter and ultimate pits are in Figures 21 and 22.