Q: When is the best time to continue an Au project, if prices have improved and the resource is about to go into reserve, assuming it is for more than half a million ounces but does not reach a million oz?
3 thoughts on “Q: When is the best time to continue an Au project, if prices have improved and the resource is about to go into reserve, assuming it is for more than half a million ounces but does not reach a million oz?”
With the current strengthening gold prices even smaller deposits of under a 100koz are likely to be economic
Q: When is the best time to continue an Au project, if prices have improved and the Resource is about to go into Reserve, assuming it is for more than half a million ounces but does not reach a million oz?
Answer: There is no particular time to start exploring for or continue Exploration for Gold. The same applies to any mineral as long as there is demand for such mineral and, ofcourse, an “attractive” market price. If Gold Resources have been already defined and prefeasibilty is positive, with a minimum gold content of say 3200 Ozs or ~100kg, (=Rs.45 Crore @ US$ 2000 per Oz and Rs.70 per$) mining can be started by a Ma-Bap company. A minimum turn over 4.5Cr per annum(=10kg of gold per year) is a good business in India for a family owned private limited company. So, a deposit/Resource of half a million Ozs is an excellent, top of the range, proposition for mining and producing a tonne of gold per annum.
If, the Minsitry of Mines, Govt of India, adapts FCFS mode of granting licences for seamless PL to ML, India can see development of 203 gold deposits where gold and Cu-Au Resources are already known, These 203 gold and Cu-Au deposits can be developed into producing mines within the next 3 years provided the States grant licences and clearances in a strictly time-bound manner. I suggest for establishing a Precious Metals Authority of India on the lines of Hydrocarbon Authority, Steel Authority, Coal Authority of India fast tracking developement of gold resources of our country.
Vasudev
I would add that it depends also on the type of mine and the the cost of production. For example if is an alluvial deposits – the production costs are much lower than hard rock mineralization. In that case I would suggest to mine ASAP. But in the case of hard rock mineralization, it requires a total different organization and coast and therefore the perspective should be of years and not speculating prices.
Mineral Exploration Academy
With the current strengthening gold prices even smaller deposits of under a 100koz are likely to be economic
LikeLike
Q: When is the best time to continue an Au project, if prices have improved and the Resource is about to go into Reserve, assuming it is for more than half a million ounces but does not reach a million oz?
Answer: There is no particular time to start exploring for or continue Exploration for Gold. The same applies to any mineral as long as there is demand for such mineral and, ofcourse, an “attractive” market price. If Gold Resources have been already defined and prefeasibilty is positive, with a minimum gold content of say 3200 Ozs or ~100kg, (=Rs.45 Crore @ US$ 2000 per Oz and Rs.70 per$) mining can be started by a Ma-Bap company. A minimum turn over 4.5Cr per annum(=10kg of gold per year) is a good business in India for a family owned private limited company. So, a deposit/Resource of half a million Ozs is an excellent, top of the range, proposition for mining and producing a tonne of gold per annum.
If, the Minsitry of Mines, Govt of India, adapts FCFS mode of granting licences for seamless PL to ML, India can see development of 203 gold deposits where gold and Cu-Au Resources are already known, These 203 gold and Cu-Au deposits can be developed into producing mines within the next 3 years provided the States grant licences and clearances in a strictly time-bound manner. I suggest for establishing a Precious Metals Authority of India on the lines of Hydrocarbon Authority, Steel Authority, Coal Authority of India fast tracking developement of gold resources of our country.
Vasudev
LikeLike
I would add that it depends also on the type of mine and the the cost of production. For example if is an alluvial deposits – the production costs are much lower than hard rock mineralization. In that case I would suggest to mine ASAP. But in the case of hard rock mineralization, it requires a total different organization and coast and therefore the perspective should be of years and not speculating prices.
LikeLike