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: Ed Ajootian who wrote (5399)	1/26/2006 12:36:12 PM
From: E. Charters	Read Replies (3) of 78412

The major thing that excites the market about a junior company is a "find" that is new, exciting, and mysterious. In other words anticipation sells more than satisfaction. This is largely a game of smoke and mirrors. What gets a producer interested is the prospect of good return on mining obviously. Usually they sniff around at prospect of an open pit with 1 to 2 million ounces in a favourable regulatory environment where good metallurgy may be indicated. It seems that the market's condition itself it one of the major factors, as most of these programs get recycled at each bull market. There is no 43-101F category of probable reserves. The headings are measured, and/or indicated or inferred resources. These categories refer to the degree of confidence one can place in the mineability and profitability of the resource. Once these factors are very well established in a 3 dimensional way by sampling and ore testing, they can be called reserves. The caveat is that a reserve must be a minimum size in order to be mineable and its recoverable by some means. This varies widely depending on the environment the resource is found in and the availability of infrastructure to process the resource. A resource that may be there based on geological projections without any determination of sampling is called a target. Almaden most probably falls into the category of an inferred and perhaps indicated resource. Its viability as a mine is subject to a feasibility study yet to be done. EC<:-}

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