Laserfiche WebLink
ore feed for the purpose of assessing the grade surcharge for each <br />smelter shipment. <br />b. For the purpose of determining ore grade, any silver present <br />in the concentrates shall be converted to a gold equivalent based upon <br />the settlement price for gold and silver contained in the settlement <br />sheet. <br />[Example: 400 ounces of silver in concentrates, and gold and silver <br />settlement prices of $400 and $5.00, respectively are shown, calculate <br />equivalent ounces as follows: <br />400 oz. x $5.00 = 2000 = 5 gold equivalent ounces <br />$400 400 <br />to be added to the gold ounces total present according to the smelter <br />settlement sheet.] <br />c. The formula for determining ore grade shall be as follows: <br />gold equivalent ounces (gold plus converted silver <br />belt scale reading tons of throughput-15 tons <br />[Example: 247 gold equivalent ounces = 247 = .492 oz/ton <br />517 - 15 502 ore grade <br />d. The grade surcharge shall be assessed upon the modified net <br />smelter returns ("MNSR") as defined herein: <br />Modified Net Smelter Returns = a - l b x (c + d) ] ,where <br />a =Total Cash Returns From Smelter Less Transportation <br />Insurance and other costs of shipping to smelter <br />["Net Smelter Returns"], as "Net Smelter Returns" <br />are defined in the industry <br />b =Total belt scale tons of throughput - 15 tons <br />c =Presumed cost of milling <br />d =Presumed cost of mining <br />[Example: $70,000 - [ 502 (30+10) ] _ <br />$70,000 - 20,080 <br />$49,920 Modified Net Smelter Returns] <br />6 <br />