GDA 0.00% 10.0¢ gondwana resources limited

parker range... rough economics

  1. 24,130 Posts.
    watso thinks that parker range is not all that exciting. anyway, be what it may, watso provides the following as some form of rough calculations. they are rough, but they could provide the basis of questions to the company (eg at the agm).

    looking at the last quarterly, then the best prospect is at "buffalo Bill), where there are about 400,000 oz at 3gm - ie about 40,000 oz

    toll milling cost = $35 per ton

    cartage = $5 per ton

    mining = $25 per ton

    total = $65 per ton

    grade = 3gm per ton, but assume 90% recovery



    400,000 tons at 3gm @ 90% recovery = 36,000 0z (approx)

    australian gold price = $1100 per oz... 36,000 oz = $40m


    costs = 400,000 x $65 = $26m

    there must be some capital costs involved somewhere



    there could be a few dollars for gda, somewhere. of course, the exploration costs have to be recovered

    anyway, here is the problem. even if gda prove up a the tonnage, then sbm would have to set aside the time to toll treat the ore - but if they have their own ore, then they would probably not be all that interested in toll treating any other ore.

    watso just tossing in a few numbers , and if holders are interested, then they could sound intelligent, and question the directors on the matter

    frankly, with a market cap of about $2m, then all up, this stock is not a bad punt. nevertheless, watso would not call it a buy, as history will probably repeat itself, and serious shareholder losses will be the end result (just look back over the last decade, and see what has happened)







 
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