Can anyone tell me why AEM got so heavily into this prospect and why they have started development of an open pit mine. They have just forked out big bucks to buy out Grayd Resources for it's share. Yet on the company website it gives total resources of about 1 Million ounces at a .6 gram grade!?? That's correct, not six grams but "point" six grams per ton! That spells out very high operating costs. What is going on here? Has AEM lost their marbles?
Fair enough. That's what the company is telling investors. But are they leaving something out?
Most large open pit mining operations are supposed to be economic at grades of 1.5 gm/ton (Osisko), 3-5 gm/ton (Carlin Nevada) and higher of course. Yet here we have a smaller open pit operation with grades of close to 1/2 gm/ton. That means 70 tons of ore to produce one ounce. On the surface it appears uneconomic. So unless they are relying on cheap Mexican labour of something like $20 a day for the life of the project, an erroneous assumption, then I would think there is something AEM is not telling us.