Gold and Silver Juniors, Mid-tiers and Producers 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 : Gold and Silver Juniors, Mid-tiers and Producers

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LoneClone who wrote (31233)	1/29/2007 8:00:07 PM
From: Mr. Aloha	Read Replies (3) of 78416

How much do you expect the 2006 drilling to affect the project economics? Do you expect the total reserves to go up significantly, and for them to redo the feasibility study? Do you expect them to expand their production with a bigger mill, which would require a bigger capex and maybe a third ACB, or do you expect the mine life to be increased beyond 8 years? It looks to me like the 2006 drilling on the deposit covered by the feasibility study is included: This estimate is based on a new resource estimate that included seven ore definition holes totalling 2,232 m drilled as part of the 2006 exploration program. It looks like what wasn't included was 2006 drilling on 2 separate areas, which wouldn't be included in the feasibility study anyway and doesn't have enough drilling and analysis done to be defined as reserves: It is important to note that the A-Extension which was discovered in 2006 is not included in this resource number, nor is any mineralization from the Big Bull Deposit area, including the new high-grade zone discovered late in 2006. Maybe I'm missing something, but I don't think the updated resource report would have made a difference to the feasibility study because those areas weren't part of its scope, so it didn't make sense for them to hold back the BFS. I wouldn't count on the updated 43-101 estimate to have any impact on this feasibility study, though another study could be done on these separate areas or maybe an expanded feasibility study could be done to include them once they're proven up. The A-Extension and Big Bull deposits provide them with potential to extend the mine life in the future, but I don't think they'll affect the financing of this project. The selloff based on the marginal economics using an unproven transportation method may be overdone, and RDV may be a bargain, but IMO it's not because the 2006 drilling isn't included in this BFS.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next