GOZ.V - Super Pit ??
>>>>>>>>>>>>>>>>
talked to Bob W. on Friday at length. Although he has to be careful about forward looking statements, I found that he is sounding more optomistic than ever. He is very confident about total resources(as in quite large). That was risk #1. Risk #2 is to determine consistency in vein sets. They will be bringing back their underground drill contractor in April(earliest available time). They will be drilling more than is required to be sure that they are mining on vein sets that have good continuity.
He mentioned there is a newsletter that was very interested in the mine.
Also, he said there is discussion about the possibility of a "super-pit" concept like OSK. An engineer from Sweden says that you could find gold pretty much anywhere you dig.
A possibility would be to start mining with the current plan of 75,000 oz per year at roughly $350-$400 total costs and pay for the entire super-pit project from cash flow. Either way, confidence is growing in this project and the current share price is an absolute bargain.
>>>>>>>>>>>>>>>>
>>>>>>>>>>>>>>>>
assume you are referring to V.OSK ( $11.50 / 75 million shares ) which has a "super-pit " gold resource of 4.6 million oz in a resource of about 85 million tons grading about 1.6 gms/ton ( 1 gms cut-off ).
It is well known that the Bjordal gold deposit is a Intrusive Related class which is well known for its large multi-million gold deposits.
That claim could already be made about Bjorkdal which, in 1996, was reported to contain proven and probable reserves of 13.9 million tonnes grading 2.2 grams, equivalent to 983,000 oz. The overall resource was estimated to be 33.1 million tonnes averaging 2.78
grams, or 2.9 million oz. gold. This estimate is still valid, although not yet 43-101 compliant.
If one takes the area immediately west ( Gran ), north ( Storheden ) and east ( Nylund ) of the current pit ( which is 1.5 km long ) and adds to that dimension an extra 150 m for the Gran deposit, and an extra 500m for the Nylund deposit for a total length of 2.15 km , and a width of 1 km extending to the Storheden deposit to the north , you get an enormous pit of several hundred million tons whose current borders are known to be gold bearing from drill, til and bedrock data.
In other words, all of the conditions exist for an OSK style super pit that could easily double the current resource of about 3 million oz at grades that are significantly above those of OSK's Malartic pit.
As Bob has said many times, the gold resource is there and it could be quite large, esp as they have only explored to a depth of 200m
The gold also has excellent mettalurgical characteristics, so the main problem is how to most efficiently extract the gold.
At $600 gold, both an open pit and u/g would be profitable but the last word I had..about 10 days ago.. was that they had scoped u/g as the more profitable mining method and would conduct a 50,000 ton u/g mining test late in Q1.
Are you saying that the scoping study will also recommend a super open pit as a second option ?
>>>>>>>>>>>>>>>>
>>>>>>>>>>>>>>>>
As I indicated in an earlier post, OSK which has a market cap of about $750 million, is developing its Malartic open pit in Quebec.
It has an inferred resource of about 85 million tons, grading 1.6 gms/ton at 1 gm cut-off.
GOZ has an historical proven and probable reserves of 13.9 million tonnes grading 2.2 grams, equivalent to 983,000 oz. The overall resource was estimated to be 33.1 million tonnes averaging 2.78
grams, or 2.9 million oz. gold.
2006 and current drilling results will move a significant portion of these historical resources into the M & I category in the first half of 2007.
GOX is an active gold producer of about 20,000 oz/year, has completed its mettalurigical studies, is fully permitted and a pre-feasability study will be released this month that is expected to result in a move to full production by June/07.
OSK is much longer away from production..if that indeed occurs. as it wont make a production decision until the end of 2007.
It has yet to move its resources from the inferred to the M & I category, it has yet to complete its mettalugical study, it will have to do substantially more drilling in 2007, and it will have to receive permitting and pay compensation to move some of the existing houses to make way for the open pit mine, should that decision be made in late 2007.
This, along with mine development, will takes lots of more money requiring additional dilution.
In other words, GOZ is much farther advanced in its production enhancement plans than OSK , has everything in place to proceed to increased production without significant capital costs, and has a huge regional exploration database of drill, til and bedrock assays that could expedite future gold and base metal exploration.
The big difference is the market cap...GOZ at $30 million and OSK at $775 million.
This is not to be pejorative to OSK....it has a very good asset base and probably deserves its market cap.It is not for me, as its production cash flows are too far removed into the future.
What it does demonstrate is the fact that GOZ is extremely undervalued.
>>>>>>>>>>>>>>>>
stockhouse.ca;
|
