Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: jackjc who wrote (7384)	3/2/2006 12:42:08 AM
From: E. Charters	Read Replies (1) of 78417

All they needed for placer was .5 grams. 1 gram is very rich for a placer. You could mine that open pit in rock if there was enough of it. I think they failed to look at it right. If you have 6 dollars you probably have something. Have to bulk it to know. They also wanted a lot and that brings grade down. 90% of placers fail to make much smoke. Most are experimental mines. Average in the yukon is about $300K production per season, and short season at that. I know a dredge opportunity that has about 0.7 grams proven in 1400 holes. It needs a few bucks to get a machine in place that can stand near short waves. Probably a stilt dredge with a marine railway haul out. Not that hard to do. Maybe 3.5 million to build. Capital recovery ratio is 35 to one. Royalty is 8.5% effectively. Hard to figure revenue, so royalty could be too steep. Often placers only make 15%. Over 4 years payback would be 1.50 a yard. Operation would be about 1 dollar a yard. Recovery might be 7.50 a yard and royalty 1 dollar. I would prefer a 15% NP royalty, but it is hard to negotiate.

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