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

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To: Mr. Aloha who wrote (9863)	4/28/2006 8:56:40 AM
From: E. Charters	of 78426

Roxmark has to maximize the money availability/market surge to get into stable state development. I have a feeling they can do it. It would be nice if they can develop the Empire as well and possibly the Leitch as well as go underground on the Nortoba. they have an advanced study on the East Leitch as well as a pre-feasibility on the Northern Empire. The Leitch ran at one ounce per ton for on million tons. The Empire ran at 0.38 ozs per short ton, for a few years. The Empire had arsenic, but they are permitted for that in their area for tails and water pumping. It is fairly benign as the amount that dissolves with this relatively inert substance is low and there is no roasting process. In order to get these two deposits into production they would need ramp money for the East Leitch and shaft rehab and drifting money for the Empire. That could be as little as 10 million as they have a spare headframe for the old Empire shaft. They also need to to predicate putting the two gold sources through a mill. Mill expansion would have to be in the order of 700 tpd. They can easily do another 300 tpd with the equipment they have for about 1.5 million, already planned. Expanding a mill is very easy compared to building from scratch. I would think the 700 tpd addition could be done for about 3 million. 13 million cash needs total it would appear. Where will they get the money? Three places in my scenario. 30% Equity, 30% moly cash flow and (perhaps) 30% debt. Carrying $4.3 million in debt on an operation that produces 380 ounces per day from 700 tons ($98 million per year gross before all expenses) would not be that onerous. This presumes no debt on the moly op, which might be fair. I think it is doable. If they did moly and gold total cash flow could be 48 million per year. Altogether a fair enterprise for even their shares out, and very cheap to build. EC<:-}

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