War Eagle Mining...[WEM:VSE] Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : War Eagle Mining...[WEM:VSE]

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Harold Stone who wrote (40)	8/21/1997 2:26:00 PM
From: Jon Warren	of 235

Clarification Britton Capital was doing the selling of shares yesterday because they are buying 1M newly issued shares from WEM(PP). WEM representatives are in Mexico working on a deal with a European company to jointly develop the La Fortuna property. If the deal falls through they will still go ahead with the drill projects (hence the need for the PP) beginning in late September. Promontorios project The company is now surveying the property and selecting areas where they want to drill. The drill project will probably start around the end of September as well. If all goes well then next year they will pay another $75,000 and continue evaluation of the property. Actual mine production of the property is still years away. The company believes that this could become a world class mine especially since they are going to pay close to a $1M for it. To get a ROI on $850K for such a property they need to ramp up production to much higher levels than 200 tons per day. In the press release it was mentioned that the recoveries in 88/89 were $61 per ton not including administration costs. Gold in 1988 ranged from $410-485/oz (avg $435) and in 1989 $365-410/oz (avg$375). Silver in 1988 ranged from $6-7.10/oz (avg $6.60) and in 1989 $5.10-6/oz (avg$5.40). Today Gold is $323.60 and Silver is $4.52. Since gold is down about 14% from the avg. of $375/oz then $6186%= $52.60/ton. I don't know what the cost of administration would be for such a project? You also have to factor in the cost of the property and the drill projects as well. With the price of gold right now the mine might not be very profitable but: a) It is an open pit mine (cheaper than tunneling in a mountain). b) Mexico has a cheap labor force. c) The mine will not go into production for years and maybe then the price of gold will be much higher. Iff they believe that there is the potential of 100M+ tons then wouldn't the total potential dollar value be 100Mtons $52/ton - 1M(for the property) = $5200M - Administration costs???? These numbers are starting to give me a headache. JW

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next