|Hubris thanks for your hard and intelligent work. The intelligent part leaves most of us out. |
I like another Nevada play that I picked up just a couple weeks back or so. VG.t.
The old Queenstake. Recent share rollback and financing clobbered the price so may have some value and they project good growth for 2013. May happen as they changed mine management a couple years back:
Vancouver, BC -- December 7, 2010 -- Yukon-Nevada Gold Corp. (the "Company") (Toronto Stock Exchange: YNG; Frankfurt Xetra Exchange: NG6) is pleased to announce the appointment of Mr. Guy Simpson as the General Manager at Jerritt Canyon, Nevada.
What I really like is the roaster worth a billion or so to reproduce. They can rent out capacity to bring their gold cost down:
?6,000 Tons/Day Roaster Mill at the Jerritt Canyon Mine - Valuable Strategic Asset
?Replacement cost of US$1 billion. No new roasters have been permitted in the past 12 years and none are planned.
?Toll milling opportunities - numerous companies with refractory ore in Nevada and surrounding region.
?The only roaster in Nevada and surrounding region with near-term excess capacity.
?Roaster permitted capacity of 6,000 tpd (5,400 tpd factoring in availability).
?Jerritt underground production of 3,000 tpd from current mines leaving approximately 2,400 tpd for toll milling ore processing at full permit capacity.
?Current terms being considered for toll milling agreements include:
?Start @ 1,500 tpd by Q2 2013 and up to 2,400 tpd of excess processing capacity by 2014.
?Batch processing ores with metal delivered as recovered, or VGC to retain a portion of 3rd party gold as upside.
?Structured similar to smelter concentrate processing agreements.
?Potential to initially generate $50 - $75mm, cash cost target of US$550/oz and ultimately as much as $125mm in annual revenue credit, with possible cash cost reduction to ~US$400 - US$550/oz. >>>>>>>>>>
With some luck maybe VG becomes a TO target with that roaster. Not sure why ANV did not buy them out but time will tell. ANV may be building their own.
?Expected 2012 gold production of 110,000 ozs.
?Currently on 150,000 ozs/year run rate and ramping up to 180,000-200,000 ozs in 2013 (not including toll milling).
?Cash costs declining from average of approximately US$1,600/oz in H1 2012 to an estimated US$1,015/oz Au in Q3 2012 and forecast US$885/oz in Q4 2012, driven primarily by increased throughput. >>>
See roaster renting to lower costs down to a great number IF IT HAPPENS.
Happy New Year,
PS:VG.t has some gold loans....... :-(((