traderstraff: Silver is an important industrial metal, used in electronics where conductivity is important. Gold is not really good for much except jewelry and as a "store of wealth" immune to the inflationary tendencies of your fiat paper money. Ask the people of Zimbabwe which they would rather have.
Your analysis sounds reasonable and would indicate that it would be far wiser to buy the bullion than the mine. By the time the mine gets its act together (34 years?) the price of gold could be in another down cycle.
Challenges in Gold Mining [View article]
Challenges in Gold Mining [View article]