Hi Lizzie,
<<I still haven't heard about the cactus issue I raised. People laughed when I asked about the graveyard and related issues at Tambo Grande as well. Both issues are material to the development of the deposits I believe.>>
Claude started an answer about the cactus and stuff,...
To: Elizabeth Andrews who wrote (867)
From: Claude Cormier May 11, 2000 12:03 PM
Respond to Post # 868 of 945
Eliz,
I guess your question is serious, but I don't know and I don't think it matters. Alamo Dorado is in the Sonora State and I heard it is one of the best mining state in Mexico.
I was told there weere no environmental issues in that area but I will check on this.
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Perhaps he is still checking? Claude,...have you checked yet?????????????
Hamster calculations,...note I used a 60% recovery!!
Also note you mentioned insurance, trucking and smelting costs to be added,...I assumed my overhead costs of CDN$3 million would include such charges. Perhaps you can come up with better figures and I will add them. They will have to be pretty high to change the predicted share price below a double, as I calculate the price could rise to above $8.00 with the present figures.
hamster calculations stand.,,,
http://www.siliconinvestor.com/readmsg.aspx?msgid=13687479&s=hamster
15000 {tonnes/day} x (US$11-US$3.40){revenue-cost to process} x 300{production days/year} x 0.60 {recovery rate} x 1.47 {U.S. exchange} - CDN$3,000,000 {overhead and exploration costs} - CDN$10,000,000 {financing interest and depreciation on capex of CDN$45,000,000} - $6,000,000 {tax 35%} / 11,000,000 {outstanding shares & warrants}
= CDN$1.01{eps} * 8 {multiple} = $8.08 price target
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Claude does say that the first couple years will be better than these calculations indicate, because the ore is richer at the top.
If we wait to get all the answers, the stock will be considerably higher or lower. Gotta decide now.
As soon as we solve the cactus and peyote question, we should double in price I guess :-)))))
Also note that the resource in this deposit has expanded considerably since I did these calculations. It is quite possible that the processing rate could be increased substantially. Hopefully Claude will find out how much water is available for the leaching pads. Is there lots of water nearby Claude?????? |
