Positive PEA for RBY and F2 project
RBY just released the results from it's preliminary economic analysis for the F2 project that it owns 100% and the results look pretty good. A quick synopsis here, though you should really click on the link to get the poop on the scoop...
"The PEA is a very good start. It indicates that the F2 Gold System is a potentially viable project capable of producing a steady state average of 180,000 ounces of gold per year and over 200,000 ounces ( cash cost of ~200/oz, emphasis mine) at its peak using conventional mining and processing techniques with an initial capital investment of $214 million. The use of a 30% contingency on capital costs represents a reasonably conservative approach which recognizes the reality of cost escalation in the industry. We are also pleased to have been able to convert a significant portion of resources to the Indicated category. The deposit remains open in all directions and the PEA outlines a number of areas for potential future optimization. Management considers the range of results presented by AMC to be largely consistent with our most recent (March 31, 2011) resource estimates with the important difference of the conversion of some previously categorized Inferred Resources to a significant Indicated Resource component in the new AMC estimates," stated David Adamson, President and CEO."
"It should be noted that, in determining the mining inventory, AMC decided to take a conservative mine planning approach in applying the average diluted resource grade to the bottom five mining horizons (bottom 305 metres of the resource) rather than use the modelled average grade of 33.8 g/t, thus reducing the total ounces on these levels. "
In other words, the reality is that production, and therefore revenue generation, can be a lot better than what is being reported here :D