Mining Stock Education · Wednesday, July 15, 2026
In a hypothetical scenario with identical grades and tonnages, Dr. Rob Stevens indicates a general preference for investing in oxide deposits over sulfide deposits. This preference stems from the typically lower capital and operating costs associated with oxide deposits, leading to faster cash flow generation and potential profitability even at lower metal prices.
“Well, that's a, uh, that's a great question, Bill, and it really gets to the heart of it. And, you know, the general rule of thumb, and, and the reason why I brought this up, is that generally, you would lean towards the oxide deposit because of the lower cost characteristics.”
“So you're looking at a deposit that can be mined and processed, uh, much more cheaply. Uh, you know, the capital costs are typically lower. You don't necessarily need a mill. You might be able to do it with heap leaching. And so, uh, the operating costs are also generally lower.”
“So, uh, yes, based on those assumptions, the oxide deposit would be my preference.”