Winzer this is an excerpt from my post #38. Mining is underway on the Mexican property. My understanding is that the ore is being processed off property until the completion of their 100 tonne/day floatation mill, which is under construction and should be completed next month. I don't have info in front of me, but I think they were hoping for 10 years mine life but I WILL get back to you with firm figure when I get to office, so don't quote me
FFV is also setting up a vat leach process on the site which will process the tailings (25000-40000 tonnes) over a period of what, IMO, should take 1.5-2 years to process. they are also negitiating for a property which is close to mine site which was worked as a small open pit operation in the fifties. My guess is they would use the material for feedstock on vat leach when tailings are gone.
FFV management, unlike our friend "Kee" has more experience in mining and processing then they do in bullshiting.
ROJECTED CASH FLOWS
Cash flow at the end of 1997 should be as follows:
Mill Operation 100 tonnes per day
ore grade 15 gms gold@$380. per oz $170.00
500 gms silver@$5.00 per oz $75.00
total value per ton $245.00
at 85% recovery -$37.00 Net Recovery $208.00 Less mining @$20 per tonne
milling @ $15 per tonne
overhead @$5. per tonne -$40.00
Gross Profit Per Ton $168.00
=$168 x 100 tons x 300 days per year
Gross Profit Per Year $5,040,000.00 US
Vat Leach Operation 100 tonnes per day
Ore Grade
5 gms gold per ton $56.00
350 gms silver per ton $50.00 Total $106.00 @ 80% recovery $85.00 per ton Mining Cost $10 processing
$10 -$20.00 per ton Net Recovery $65.00 per ton
=$65 x 100 tons x 300 days per year
Gross Profit Per Year $2,145,000.00 US
TOTAL GROSS PROFIT PER YEAR $7,185,000.00 US
FOREFRONTS SHARE $3,592,500.00 US
OUTLOOK
A projected gross profit of US $3,592,500 may be reduced to a net profit of of US $2,000,000.00 or CDN
$2.7 million by the end of 1 year of operation. Assuming a total of 7 million shares issued at the time, it gives
earnings of 35 cents a share. At 6 times earnings, Forefront shares should trade at around $2.00 per share
within one year of start up of production.
Ted Slanker "works" the numbers within his report (Vol. 13 No.1 January 21, 1996) and sees Cdn $1.84. He
also covers all the properties in detail.
For the record. I'm a geologist in Nova Scotia with no interest in Forefront other than being a shareholder. I
believe that in the wake of the Bre-x fiasco, regardless of outcome, investors in junior golds will be attracted
to profitable production first, attractive exploration properties second.
Hope you found this info as interesting as I did.
Best Regards
Bruce Little
carraigh@atcon.com |
