Replies to post #40889 on Mexus Gold US (MXSG)

[T-Hawk]

Let's try this another way.

For example, say it cost $10,000,000 to build out a fully operational mine (pads, buildings, processing plants, labs, etc).

How do you decide how much cost of that $10,000,000 is assigned to each ounce without knowing how many total ounces are in reserve?

If there are 1 million oz in reserve then it's $10oz fixed cost. If there are only 100,000 oz in reserve it's a $100 per ounce fixed cost.

The number of ounces in reserve matter when it comes to cost per ounce calculations.