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| Development Farallon's G-9 Mine was discovered, financed, and constructed in under 4 years. This is a remarkable achievement of development for a mining company to bring a blind, greenfield discover into production in under 4 years. Site Advantages: A site layout for the G-9 Mine can be seen in the following figure below. The operation has many distinct advantages as well including:
Farallon's G-9 Project Scope:
Infrastructure:
Farallon's Parallel Track Approach: The Company followed a "Parallel Track" strategy with respect to its approach to the development of the G-9 deposit. In effect the Company advanced exploration, permitting, mine and mill design, equipment acquisition, mill construction and mine pre-development work concurrently. A parallel-track strategy for the G-9 deposit involves incurring some expenditures as if a positive production decision had already been made. This strategy may be contrasted with a more conventional approach whereby expenditures of a post-production decision nature, such as ordering plant and equipment, constructing site access roads and power lines, are deferred until a formal production decision has been made, based usually on the results of a feasibility study. By contrast, the parallel-track strategy accepts that the risks that some of the expenditures outlined might prove to be either wasted if theproduction decision is negative and the property ultimately abandoned; or inefficient if a positive decision is made using a different mine plan (in which case the parallel-track approach weighs this risk against the benefits of potentially being in production sooner). The strategy takes into account that some of the parallel-track expenditures will benefit the project if a production decision is merely deferred. In Farallon's case, the strategy worked remarkably well, with very few hiccups. So much so, that the mine and mill were built substantially on-time and on-budget. The mine and mill were in operation on July 1, 2008 and the final project cost was only 20% above the Company's Preliminary Economic Assessment cost of US$125 million.
Diagram of the Parallel Track Approach
click to enlarge |
G-9 Mine : Overview
Location
History of G-9
Development
Production & Mine Plan
Processing
Marketing
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