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

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To: Mr. Aloha who wrote (8647)	3/30/2006 3:42:53 PM
From: E. Charters	Read Replies (2) of 78416

Assuming they can mint say 11 lbs of smelted metal from each ton, (conservative estimate) then given a 90,000 ton per year output, they have pretty fair ratios to talk about. This is a realistic scenario. Realistically too, they need the 3 to 4 million up front to start in on it. Capital up front is the name of the game. What the bulk sample should demonstrate is what the return on mining per ton actually is. Since the samples run from 0.05 to 30% MoS2 (.025 to 15% recovered metal in oxide) it is dangerous to imagine averages at present. If recovered grade comes out as good as 2% MoS2 then they can say they recover 20 lbs at the smelter just about for sure. In that case, you can look at perhaps 1.8 million lbs of moly metal pay in one year. That could materialize on the books by the end of 2007, assuming the price holds. Cost are in the region of 11.46 US dollars per lb with mining and milling combined with the smelter charges. Mining and milling costs may be about 7 dollars CDN per pure metal lb CDN. (6.03 US) (perhaps as low as 5.50/lb CDN or 4.75 US) Smelter charges are sliding scale, so profits are possible down to as low as 9-10 dollars US quoted for pure metal in oxide produced at the smelter. EBIDT from the greater figures above could be as good as $28,260,000-$31,860,00 CDN by end of 2007. This figures exceeds their current capitalization by almost a factor of 2. It is possible to mine profitably even if their metal recovery per ton is half the work up above. At $26 million recovered gross, they still make pretty fair money ... almost $13 million. We may be able to add to that ourselves. EC<:-}

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