John Cumming wrote a detailed article on Gabriel Resources feasibility study of the Rosia Montana gold project in Romania (T.N.M., Aug. 20-26/01). His factually correct reporting of the study would have produced a responsible article if he had not concluded with personal comment which incorrectly questioned the project’s economics. Had he included the fact that the project produces 750,000 oz. per year at a cost of $107 per oz. with an internal return rate (IRR) of more than 30% and a payback period of 2.6 years, his article would have been complete.
To conclude by questioning the economics, Mr. Cumming showed he failed to read the full press release by Gabriel or that he fails to understand that production costs of the product, not head grade alone, determine economics.
To my knowledge, the Las Cristinas project has not delivered a feasibility study demonstrating economics approaching those of Rosia Montana. To compare the two projects places Mr. Cumming’s judgment in question. His final comments on the questionable future of low-grade, high-tonnage operations further calls into question his understanding of the mining industry.
Clifford Davis
President
Gabriel Resources
Quote metal grades separately
In your article on Starfield Resources’ Ferguson Lake copper-nickel-cobalt-platinum-palladium property in Nunavut (T.N.M., Aug. 13-19/01), you reported encouraging results for a recent revision of the inferred resource estimates. However, although the copper and nickel grades were given separately, the platinum and palladium grades were lumped together as a single value. In keeping with the standards set out for reporting of reserves and resources set out in National Instrument 43-101, these metals should also be presented separately.
The West, East-1 and East-2 zones, at a 1% combined nickel-copper cutoff grade, were reported as an inferred resource of 46.1 million tonnes grading 0.88% copper, 0.58% nickel, and 1.41 grams per tonne combined platinum-palladium. If I recall correctly, the approximate ratio of platinum to palladium at Ferguson Lake is palladium-dominant at 1:6. Thus, the grades would be in the order of 0.2 grams per tonne platinum and 1.21 grams per tonne palladium.
Ben Whiting
Kingston, Ont.
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