It couldn't be 100 million tons. If it were 1.5 grams they would be into near 5 million ounces. In Nevada a heap leach mine is as little as 250,000 ounceseven with overburden. That is why I was so enthusiastic about Mar West as they had scads of counces from surface down in easily rippable rock and in some they had 500K ounces. But they just dumped it to Glamis for a cheap buyout. For pennies on the dollar they could have produced. Granted it was the start of the falling gold market, but it sure disappointed. The value today in my eyes is in people who intend to gather properties and produce, not just drill forever as so many people did in the 70's and 80's. In truth, a low grade cut off just means that the cost to produce is low, which is good. Margin per ton in a gold stock is not a good way to look at it, but if costs are 300, I wonder if that is over mine life, or just during payback period.
The things to look at here as to whether it is a winner, are management track record, hardness/breakability and porosity of the rock, barren oveburden depth, clays in rock, release size on crush, recovery/milling type, and finally political situation/development problems. The subsequent capex figures should fall into place as estimates. You can get it wrong. Clays, or hard rock have defeated some. Mexican/LA development problems have chased others away from some places. Capex can defeat in some markets. At high costs it can be a hard sell.
I admit I have not done my usual scan and analysis of this one, I am just scratching at the surface. Let's hope management is taking a much more detailed and seasoned approach.
The Dome walk is 60-40. I am not saying they know everything. I have seen them screw up at many orebodies and leave them to juniors. A lot of their policy is now made in Colorado, by Elephant open pit chasers. Anything less than a Grasberg and they turn up their nose. I saw them make many mistakes in Musslewhite, and Dona Lake. With the ore they had in Detour and their plans to develop is was a shock to see them abandon Detour with its mill. It was a Colorado decision, based on ROI and anti-underground thinking. At Musslewhite and Dona they did bad sampling and could not decide their grade. They believed the sampling towers, which are a bad methodology. (tendency to find low grade) They installed bad milling methods and produce high losses ina refractory ore. So they don't know everything by a longshot.
EC<:-}
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