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Re: sem1 post# 32864

Sunday, 12/04/2011 4:43:03 PM

Sunday, December 04, 2011 4:43:03 PM

Post# of 67010
Sergei, Toll milling is paid based on a formula calculated on the assay value of the ore bearing aggregate to be processed.
If the estimated gold content per ton is low, then a higher rate is charged. That is because it takes more tons of raw aggregate to get an ounce of gold or other precious metals. This equates to more costs for the mill, due to wear on the mill, labor and equipment costs, etc, which need to be covered by the "toll" charged.
If the ore has a high estimated gold (or precious metal) content, then less aggregate is milled per ounce of recovered material, and a smaller percentage is negotiated.
Until CGFIA executes a contract with a mining company, we won't really know what the toll rate is. It will vary in each contract. You can be sure that CGFIA will be in a position to charge a profitable rate to mill metals for other miners. When you are the only mill in the area, you can almost name your price. Profitability is assured.
I wish I could be more specific, but that's the way it is done.

Don't take my word for it, Do your own research! Then you will know it's true!

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