43-101 2008 Technical Report On The La Fortuna Project, Durango ...
43-101 2008 Technical Report On The La Fortuna Project, Durango ...
43-101 2008 Technical Report On The La Fortuna Project, Durango ...
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Operating experience has indicated that much of the higher grade material presently being crushed (up to<br />
70%) is already below the required final size range. Castle Gold management has indicated that it intends<br />
to introduce a screening plant ahead of the crusher. This should ensure that only about 30% of the<br />
material will actually go through the crusher; drastically reducing the crushing costs and allowing for a<br />
greater proportion of ROM ore to be sent to screening and crushing thereby increasing the overall heap<br />
leach recoveries. <strong>The</strong> scenarios do not account for any agglomeration of El Castillo ROM material.<br />
Operating experience from the mine indicates that the material mined to date would not have benefited<br />
from agglomerating.<br />
16.2.1.2 Metal Prices<br />
Recently gold prices have exceeded the US$1,000/ounce threshold. When Howe first began this project<br />
(January <strong>2008</strong>) the average 3 year gold price (London Daily Fixing) was US$578/oz. At the current time<br />
(June 27, <strong>2008</strong>) the average trailing three year gold price is US$652/oz. In addition the June 27, <strong>2008</strong><br />
London Gold price Second Fixing was US$919.50 per oz. Howe has used a gold price of $712 in <strong>2008</strong>,<br />
$697 in 2009 and $625 per ounce for the remainder of the mine life. <strong>The</strong>se prices are based on a National<br />
Bank compilation of the forecasts of 35 major institutions in November 2007.<br />
16.2.1.3 Mine Dilution<br />
Howe has added 5% dilution at zero grade to the gold grades in the cash flow calculations.<br />
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