Using USGS charts and figures for Comstock Au Epithermal Vein Deposits (which is what WEM appears to be), the average grade of Au produced from all these deposits averages 7.5 g./t Au, but a few properties have produced as much as 27 g./t Au on average.
Diamond Mill estimate of production using the following factors:
1. 100 t./day prod. from 2 shifts/day 7 days/wk.
2. 90% recovery of Au-Ag in ore.
3. Cost of production (COP) of $90./oz. Au (Ag /t is included).
4. GoldCorp rent/yr. - $1 mil. + monthly cost of $10,000 = $3,200./d as total rent (2.8 oz Au/day)
5. GoldCorp gets 15 % of Au-Ag prod. after COP is pd.
6. Pierre salary - $500/day.
7. Office costs, lawyers - $500./day.
Assuming aver. content of ore at 10 g./t Au and 5 oz. Ag /t, with prod. of 100 t/d = 29 oz. Au/d and 450 oz. Ag/d = $41, 450./d - COP of $90./oz. Au = $38,840./d - GoldCorp 2 rents = $35,640./d - GoldCorp 15% = $30,300./d - Pierre salary = $29,800./d - office and lawyers = $29, 300./d as profit.
$29,300./d x 30 d/mo. = $880,000./mo. profit x 12 mo. = $10.56 mil profit/yr.
Division by Pierre of profits:
1. one third to share buyback.
2. one third to exploration and drilling.
3. one third to cash in bank (save for larger mill?).
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If SFMI doubles mill prod. tonnage in July to 200 t/d., then the profit/d. goes to $62,800./d, or $22. mil/y profits.
If the mill prod. goes to 400t/d, the profit/d goes to $126,000., or $44. mil/yr.
If Pierre used one third of the 200t/d profits ($7.33 mil) and bought shares from $.50 to $1.00 in a yr., with the aver. repurchase share at $.65/s, then SFMI could repurchase 9.77 mil. shares of stock in 1 yr.
