At first the average grades of 141 g/tonne indicated and 151 g/tonne inferred look on the low end, but these values include the open pit which can be profitable at lower grades. The underground mine portion of the resource has grades of 183 g/tonne indicated and 178 g/tonne inferred. This is 5.8 ounce per tonne silver which at $31/ounce silver and the 88% recovery for sulphides will generate revenue of $158/tonne and should be profitable.
The open pit has an average grade of 106 g/tonne which is 3.4 oz/tonne. Due to about 40% of the open pit being oxides, the average recovery will be about 77% which at $31 silver will generate revenue of $81/tonne.
I do not know what the costs will be, but at $50/tonne for the open pit and $100/tonne for the underground, total profits would be $604 million if the entire tonnage was mined.
At 1,000 tpg, mine life would be 36 years and average silver production would be 1.42 million oz per year. Profit would be about $16.7 million a year. For a 2,000 tpd operation, mine life would be 18 years and production and profit would be double. Almost a dollar per share.
