Copied from the BLM CASE File, Page 11 of ALJ Decision.
i
!
Case # W AOR 46435 A I
I
I determined the average specific gravity of the mineralized drill cores to be 2.76, I
which equates to a tonnage factor of 11.6 cubic feet per ton. (Ex. 1 at 26-34).
BLM and AGS produced their mineral report on November 3,2000. The i• report includes a resource calculation, a discussion of metallurgy of the Excelsior ore, I proposed mining and milling plans, and a feasibility evaluation. Since at that time, I
Excelsior had proposed an underground mining plan, AGS considered four scenarios [
for mining 50 tpd targeting the high grade resource zone of about 100,000 tons. The I Report determined that Excelsior's proposed vertical crater retreat mining method I would not be practical due to the orientation of the deposit, and other technical
reasons. AGS calculated substantially greater capital costs and operating costs than had Excelsior for its proposed 50 tpd operation targeting the most economical and
}'
practical underground mining alternative. (Ex. 1 at 54-56). I
I
The Mineral Report concluded that underground mining of the Wells Creek
deposit could break even with the price of gold at $411.39 per ounce and silver at
l
$8.23 per ounce. These prices were substantially higher than those prevailing at the i
I
time of the mineral examination ($270!oz for Au and $4.73!oz Ag), as well as higher
than rolling five-year average prices over the previous 10 years. There were several periods a bit further in the past, however, particularly in much of the 1980's, when the prices of both gold and silver exceeded these break-even values. As further described below, the prices of both gold and silver have now risen to more than
double those projected break-even values. (Ex. 1 at 56-57).3
Excelsior later submitted several succeeding proposed mining plans, finally settling before the hearing on a proposal to mine the deposit using only surface or
open pit methods. The parties stipulated to consider mining the claims using open 1
pit methods as the subject of this contest hearing. The parties' subsequent proposals I
and. responses, including determinations of resources, costs, and feasibility, are I,
L
addressed in detail in the following sections in these Findings of Fact. L
!
i
i
I
3 Since the end of the hearing, the prices of precious metals have soared. Official notice is !
taken that, as of the date of this Decision, the spot price for gold is $917.60 per ounce, and for silver, I
$17.36 per ounce. New York Times Futures Tables, April 22, 2008. The issue of the extent, if any, to
which this steep rise in precious metal commodity prices since the time of the hearing may be addressed in this Decision is considered below in the Discussion section."