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Message: Re: Stock price going down and questions about Kimber

SB, I was looking at the Ocampo property being mined by Gammon Gold, You can see more at www.gammongold.com/ocampo.php?PHPSES...

But it appears in its open pit operations that the grades are similar to Kimber's. They are estimating getting gold out of the ground at around $350 per ounce. I'm not sure exactly when this was written, looks like sometime near the end of last year but keeping in mind the large energy expenses associated with open pit mining operations which can be upwards of 30% of the operation, I think Kimber still is in good shape. Say oil goes to $200 a barrel therefore we double the 30% of this expense from $105 to $210 dollars. We're still looking at getting gold out of the ground at $455 an ounce. Still a healthy margin with gold at $1000. But I can imagine if oil goes to $200 a barrel, gold will be higher too. Make sense? W

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