This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Rainy River Resources Completes Feasibility Study: Establishes Intermediate Production Profile With 4.0 Million Ounces Of Gold In Proven And Probable Reserves


The RRGP benefits from world-class infrastructure, services and available labour in the immediate area. The project site is located only 65 km from the town of Fort Frances (population 8,000) and is accessible year-round by a network of sealed provincial highways.

Infrastructure is anticipated to include:

  • Plant site and haul roads, gate house, parking, bus station and weigh station;
  • Separate administration building, mine office and process building;
  • Assay lab;
  • Mine maintenance garage, warehouse;
  • Fuel storage facilities;
  • Fresh water supply and fire protection;
  • Sewage treatment;
  • One tailings management facility;
  • Two mine rock overburden/rock stockpiles;
  • Various water management ponds;
  • Power to the project supplied by a new 17 km long 230-kV transmission line connecting to the provincial power grid, with the total power draw expected to be 57 MW.
  • Highway 600 realignment, east access road.

Operating and Capital Costs

Total operating costs for the RRGP are summarized in Table 3 (a) as follows:

Table 3 (a) - Average Life-of-Mine Operating Costs (in Canadian dollars per tonne)

    Cost Structure                  Unit         Costs per Unit
    --------------                  ----         --------------
    Open pit mining              C$/t mined          $1.95
    Underground mining[1]        C$/t mined          $75.52
    Open pit mining[2]          C$ / t milled        $7.19
    Underground mining[1]       C$ / t milled        $2.02
    Processing                  C$ / t milled        $8.65
    General & Administrative    C$ / t milled        $1.21
    Refining expenses           C$ / t milled        $0.14
    Royalties                   C$ / t milled        $0.54
    Total                       C$ / t milled        $19.75

Notes: 1.    Weighted average of long hole and cut and fill underground mining costs. 2.    Stockpile reclamation costs of $0.337 per tonne milled is included in Open pit mining costs.

Total cash costs for the RRGP are summarized in Table 3 (b) as follows:

Table 3 (b): Average Gold Cash Costs [ 1, 2 ]

     Area                                 Initial 5    Initial 10      LOM
                                            Years        Years        US$/oz
                                          US$/oz Au    $US/oz Au        Au
                                          ---------    ---------      ------
    Mining (Open Pit and Underground)[3]    $225          $268         $275
    Processing                              $184          $188         $258
    General and Administrative               $27          $28           $36
    Refining Expenses                        $4            $4           $4
    Royalties                                $6           $18           $16
    Silver Credit                           $(33)        $(38)         $(45)
    Total Cash Costs                        $413          $468         $544
    1.               Includes silver credit and royalty payments.
    2.      Cash costs include the mining cost of stockpiled material recorded
                                in the periods in which
            the material is processed and revenue recognized, in accordance
                                    with IFRS.
    3.       During years with high stripping ratios (>3.10), the operating
                              costs associated with rock
         waste material have been capitalized and excluded from cash costs.


8 of 11

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs