I do not see a take over any time soon in SAN it is not just about ounces.
From Andean press release:
The study defines an operation based on sequential mining of the three deposits by underground and open pit mining, along with milling and refining of the ore on site. The mine will operate at a production rate of 1,850 tonnes per day, producing an average of 200,000 ounces ("oz") of gold over a 10 year mine life, at an average cash cost of about $168/oz (based on silver by-product credits of $14/oz).
Highlights of the Feasibility Study include:
-- For the first five years, Cerro Negro would produce up to a rate of
285,000 oz of gold per year at an average cash cost of $60/oz (inclusive
of silver by-product credits), making Cerro Negro one of the lowest-cost
undeveloped gold projects in the world
-- A significant internal rate of return using $850/oz gold ("Au") and
$14/oz silver ("Ag") on an initial capital investment of $275 million
-- Probable reserves of 2.1 million oz of gold and 20.6 million oz of
silver based on mining the indicated resources only at Eureka West, Bajo
Negro and Vein Zone
-- Inferred resources at Eureka West, Bajo Negro and Vein Zone have been
excluded from the FS. In addition, the newly discovered veins at San
Marcos, Mariana Norte and Mariana Central have also been excluded. The
mineralization excluded from the FS will be included in subsequent
plans.
-- Mine life of 10 years with direct employment of 533 employees
-- A sustainable development fund to invest 1% of after-tax profits into
the local communities
-- Overall metallurgical recoveries have improved to 95% for gold and 86%
of silver
-- International Cyanide Management Code compliant design
-- Significant upside remains:
-- Converting the significant inferred gold resources to indicated
status with infill and step-out drilling, thereby allowing these
resources to be included in a future mine plan
-- Further defining the size and potential of the latest discoveries at
the San Marcos, Mariana Norte and Mariana Central deposits with the
intent to incorporate these into future mine plans
-- The Eureka West deposit remains open to the west and at depth, with
exploration to resume once the current underground development is
sufficiently advanced
-- The Bajo Negro deposit remains open along strike and at depth, with
exploration to re-commence later this year
-- Further exploration potential at other Cerro Negro deposits
