Good Morning Gentlemen,
I wanted to thank everyone who attended the SHM and provided excellent coverage of a most important event.
I have been thinking about the 400oz Dore Bar (I mean who isn’t?)
I decided to do some math:
VALUATION
Assumptions:
1. Price of Gold $1700/oz
2. Price of Silver $30/oz
Just some round number to play with.
Optimistic Dore makeup (65% Gold and 35% Silver)
65% of 400oz =260oz Gold= $442,000
35% of 400oz = 140oz Silver = $4,200
Total Optimistic Dore Value = $446,200
Pessimistic Dore makeup (35% Gold and 65% Silver)
35% of 400oz = 140oz Gold = $238,000
65% of 400oz =260oz Silver= $7,800
Total Pessimistic Dore Value = $245,800
Next, I decided to try to figure out how many tons of rock took to make that bar.
TONS OF TAILINGS REQUIRED
Assumptions:
1. 20% Recovery from tailings using current methods from Assay Average of 16g/ton = 3.2g/ton
2. 1 oz = 28.35g
3. 1 troy ounce = 32.15g
400 oz Dore Bar = 11,340g
11,340g divided by 3.2g/ton = 3,543.75 tons of tailings
400 Troy oz Dore Bar = 12,860g
12,860g divided by 3.2g/ton = 4,018.75 tons of tailings
HOW LONG DID IT TAKE TO PROCESS?
Assumption:
1. Optimistic - 20 tons/day
2. Pessimistic – 12 tons/day
Regular oz = 3543.75 tons
Optimistically = 3,543.75 tons divided by 20 tons/day = 177 days
Pessimistically = 3,543.75 tons divided by 12 tons/day = 295 days
Troy oz = 4,018.75 tons
Optimistically = 4,018.75 tons divided by 20 tons/day = 201 days
Pessimistically =4,018.75 tons divided by 12 tons/day = 335 days
At this point, making one last assumption that the mill is not running on the weekends or holidays a year equates to about 250 working days at the mill.
We are looking at it taking between 8 months to 1.5 years of mill time to create the 400oz Dore bar.
Therefore, this answers the real question, which is on my mind
IS THERE ANY MORE?
From the numbers (and please feel free to correct me) the answer is ‘I don’t think so’
This does not change my feeling or opinions on SFMI/GHDC. I know that things are moving forward and the fact that we have a 400oz Dore Bar is way more impressive than other mines that don’t have anything to show.
Go long and strong!
EVANG1615
