How Much Longer ?

Here's an interesting article from the Miner. I highlighted a quote, maybe it's a case of "look out Kal, ya gunna lose part of ya town for pit extensions"

How much longer?
James Purtill, Kalgoorlie Miner
March 7, 2013, 9:43 am

How much longer?

Two independent analyses of the Super Pit’s mineral resources double the expected mine life and add 10 years to the figure provided by operator Kalgoorlie Consolidated Gold Mines.

The separate findings by Monash University and the University of WA, both predicting the mine will last until 2031, are likely to have a significant impact on community and business confidence within the region.

KCGM is the largest employer in Kalgoorlie-Boulder – it has 840 full-time employees and more than 400 contractors – and the expected life of the mine affects town planning decisions, real estate prices and long-term economic viability.

KCGM’s most recent mine plan says the mine will close in 2021 but the reports are confident this figure will change significantly.

In August, the Geological Survey of WA sent a letter to the City of Kalgoorlie-Boulder advising it should remove a reference to “the anticipated closure of the Super Pit in 2021”.

“This is subject to change,” says the letter, a copy of which has been obtained by the Kalgoorlie Miner. “The focus should be on how land use planning can facilitate the continued development of the Super Pit.”KCGM did not respond before the Kalgoorlie Miner went to press.

I’ve seen a geologist’s scale model of the Superpit that shows its orebody is essentially bottomless. It’s a narrow orebody that goes straight down,,,and down ,,, and down. This is due to particular type of faulting that isn’t very common around the world. The old timers and companies that sank shafts along “The Golden Mile” were simply all sinking shafts on the same orebody. When all those mining companies were amalgamated, they became “Kalgoorlie Consolidated Gold Mines” or “KCGM” and all those shafts were open cut to become the Superpit.

It’s now reaching the stage where it may have to go underground rather than continue to “spread” the sides of the pit to enable them to keep going down as an open cut. That takes up land mass and demolishes the local infrastructure such as roads, businesses and houses. But underground is expensive and with a gold grade of only 2.5 grammes to the tonne (GPT), it may not be worth the cost to go deeper – even though the bottom of the orebody has never been found. This is what happened in Wittwatersrand in South Africa (SA) where only cheap negro-African labour enabled the deep mines to continue to operate. Many of SA’s mines are closing down due to competition from higher grade orebodies in West Africa, such as Burkina Faso and Ghana where labour costs are even lower and “open-pit” is still an option.
So Kalgoorlie/Boulder may not suffer a loss of houses etc, The Superpit may just close.

The current gold price at around $1500.00 an ounce may look attractive to us “small timers” but these days most gold companies are getting their gold out of the ground at an average cost of $1200.00 an ounce. It doesn’t take much brains to see that any further drop in the gold price means a lotta mines will close. This could include The Superpit.

Or the Central Banks get burned along with their paper gold and Obama`s fiat dollars and gold blows through $8000 by 2018
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Some years ago I did hear they wanted to extend west and take out part of the Town of Boulder but I believe that got knocked on the head real quick when the townsfolk objected. True or False ? I don't know, but from memory it was reported in the media.
Back in 1994 when I was roaming around the area, talking to some of the old retired underground men, even they said the pit would have to go underground again someday and maybe that day is getting close.

Driller,

This is from my other thread and I think this may be just what you're looking for:

http://www.abc.net.au/news/2013-03-14/bankers-winning-the-battle-losing-the-war/4573260


C

what happened to The General Hercules , he followed matters like this does anyone know how hes going & if hes ok ? I got a larf with this fella , he says what most of us think .

Caterpillar,

Agree with Minack. I do believe GFC mark two is inevitable. Being ready for it and how to protect yourself is the tricky bit.
Every bit of gold one finds should go into a secure place and the cost involved of finding it sourced from elsewhere. Thats tricky as well .
The irony is that this now seems to be Central Bank policy as well, as they try to recover from 15 years of leasing real gold out to the "gold carry trade".
Is a gold price of $5000/oz possible near term? Yes I think it is. I just hope I live long enough to see it. Meanwhile I`ll hold onto as much of the bright yellow metal as I can get my hands on.

This is off the topic. The general got banned from this forum last year as his posts were becoming insane ranting and raving and racist. He was asked to tone it down but he ignored the warnings.
He also sent an abusive PM to management that contained language I wouldn't even use against a mongrel dog. You won't see him back here.

Roger that Cliff , didnt realise ,cheers albo.

interesting destroy part of the town to keep the rest of it alive, wonder which way they will go? I know in NZ the cus cus eating tree hugging greenies would stomp on more development in fact it prob would have never been mined in the first place....
assuming the ore is too low grade to go back underground?