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Construction and 1,000+ TPD Gold Processing Plant Expansion to be Funded from Existing Cash TORONTO, Oct. 28, 2021 (GLOBE NEWSWIRE)
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Buckreef Gold will operate the 360 tpd operation while simultaneously advancing construction on the 1,000+ tpd processing plant expansion. The 1,000+ tpd operation is expected to be capable of production 15,000 – 20,000 ounces of gold per year based on the initial mine plan and grade profile.
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The Pierina Gold/Silver Mine produced 152,000 ounces of silver last year at a cost of $852/ounce. This means that the once lowest cost gold mine in the world, has become one of the highest cost gold mines in the world. Major mining companies have operating gold mines with total cash cost of gold ranging from $500/ounce to $600/ounce in 2012.
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For example, a marginal gold producer that has AISCs of US$1200 per ounce is sailing close to the wind based on the current gold price of around US$1280 per ounce. On balance, such a company would be much more prone to significant share price volatility in the event of commodity price weakness than a stock with lower costs of production.
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