Monthly production rate at Lamaque = 3,500 ounces (@ 1,000 tpd, 3.8 g/t, 96% recv)
Monthly production rate at San Juan = 1,670 ounces
3,500 + 1,670 = 5,170 ounces, current rate for company overall
5,170 less 667 ounces paid to Deutsche Bank = 4,503 avail. to Century
Current gold price = US$1,229
US$29 increase in gold price from the recent US1,200 level
4,503 ounces * US$29 * 1.04 exch = C$135,810
A sustained $29 increase in the gold price, as a gold producer, provides compensation funding for about 22 of our workers or 7 - 10% of our Lamaque workforce.
If the gold price goes to US$1,300 by Y/E this year (as even the mainstream white collar cr____als are forecasting, even Goldman Sachs) then that $100 increase alone should provide compensation funding for around 78 of our workers or maybe 30% of our Lamaque workforce.
With long-hole stope mining at the Bedard Dyke cranked up come December (launch expected in October), with the potential of 5,800 ounces (@ 1,400 tpd, 4.5 g/t, 96% recv.) at Lamaque and 1,670 at San Juan we could see 7,470 ounces in December for company overall (excluding what the North Wall coming online can do for our production ounce totals in 2010). This level of production with the $100 increase in gold price can (alone) provide funding for 118 of our workers or 50% of our Lamaque workforce. This is completely aside from the original US$1,200 per ounce in Gross Revenue we will get from December`s production ounces.
4 comments:
There's an interesting expose on GS' 1300.00 gold price advice at: www.FXOpen.com; article by Tyler Durden 8/18.
Big surprise! GS talking story again...
Hi Prod05
As a matter of interest, how does a sizeable increase in the price of oil affects CMM's mining cost? Lets say oil at $100/- per barrel.
Hi Wingfong,
There would be some impact on our underground mining vehicles, but it would be relatively small compared to if we were still mining the Sigma open pit.
Open pit mining is heavy fuel intensive. Open pit mining is tough mining in Val d`Or. There is the cold harsh winter. There is the hard clay like material. But most impactful are the high strip ratios. The Sigma open pit started out with a 1 to 4 strip ratio but increased to about 1 to 8 by the end (due to the core problems). An open pit strip ratio is ore to waste, thus a 1 to 8 ratio means that a miner has to move 8 tonnes of wastes material for every tonne of ore that goes for processing. Open pit mining uses giant trucks that eat up fuel like there is no tomorrow.
As you can see, there is a night and day difference.
As an fyi, places like Mexico and Peru are some of the really good places for open mining mining. Firstly, the soft sandy material down there is really really accommodating to open pit mining. There are also no harsh winters to deal with. In addition, there are a number of properties where the mineralization is located very close to the surface. Also, they seem to have a number of pits where the strip ratio is 1 to 1. All of this combined, coupled with the strong gold price, often allows ore bodies down in those 2 countries (and in some other countries also) to be mined with only .5 g/t grade.
Hi Prod05
As usual, your explanation is clear and right to the point. Thank you so much.
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