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

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To: Claude Cormier who wrote (48597)	9/4/2007 8:43:27 PM
From: jackjc	Read Replies (1) of 78421

No comparison at all with MMG, which averages about 10% Zn. CKG plan has 122 MT at 0.29% Zn along with Au/Ag. And 162 MT of 0.21% Zn only, which they are saying will not be waste but will be processed with SXEW. And they are talking 1.45 Zn, while fease would need to be approx .70/lb. So .0021 X 2200 lb = 4.6 lb Zn/T or less than 4 lb recovered which would have a value of $2.80 at .70 or $5.32 at todays $1.33 Zn. So the question is, can you run the .21% through the process and make money at 2.80-5.32 per T ?? They will have to move it anyway, but can it be run through the process at a profit ?? Just my WAG that ain't big bucks and probably a loss at 2.80. The 122 MT at .29% Zn is a little better, 6.38 lb, maybe 5 lb/T recovered, or $3.50-6.65 Zn value per T. Is it worth putting in a SXEW plant to recover these type values ?? The Scorpion mine is profitable at .25 Zn with 10% grades, and MMG may be close depending on plant cost. But to even mention the Scorpion and SXEW process on .21-.29% Zn is a real stretch IMO. The Au/Ag might work depending on the POG, if the mine rate is very high. Similar grades are being mined. But a jr is in a weak position waiting for a major to buy out even for much better deposits today. Look at how many of our favs are still waiting after 7 years. FGX worked and made me money, and I hope Randy can do it again. The feeling was that he had done it twice before and a repeat was a sure thing. But after several years he could not repeat and was reduced to buying a known marginal deposit and waiting for the POG to make it economic. Now they will fine tune it to improve it to make it more attractive. Wish them success, they have been careful with their ample cash. I am paying attention to Rick Rule and the idea of only keeping the top quartile profitability jrs.

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