CAU ON THE MOVE:
CAU - Z 3.5 0.48 · 0.49 8.2 0.49 +0.045 10.1 72.6
Their feas produced conservative numbers at Briggs but each $10 in gold price increase from 600 adds 1.1 mill to the net return. In today's prices that is about 40 cents per share. So CAU could go up 5 X easy IMO
<BRIGGS MINE
The Briggs Mine, in the desert of southeastern California, is an open-pit, gold leach operation that was constructed in 1996 and has produced over 550,000 ounces of gold since production commenced. Mining ceased at Briggs in early 2004 and rinsing of the leach pads began at that time. Residual gold production from the pads is ongoing. Re-starting the Briggs Mine in light of today's gold market is Canyon's top priority. The mine is fully permitted with existing plants, infrastructure, and mobile equipment.
Feasibility studies for both the open pit and underground mine were completed in early 2007. These studies were designed to develop an accelerated approach to putting the mine back into operation. Additional drilling on the Gold tooth indeground structure has been completed and a revised Reserve estimate is being developed from this data. Drilling on the underground proved to be successful in that we discovered a major extension.
The combined underground and open pit operation, based on the feasibility studies, would produce gold at a rate of 30,000 ounces in year one of operation, 45,000 ounces in year two, 33,000 ounces in year three and 4,500 ounces in year four. Project cash operating cost, including offsite refining, through the projected mine life is estimated to be $430 per ounce of gold produced. Total capital cost is $8.25 million to initiate open pit gold production spent over a five month period. In addition, $4.6 million will be required in the next year to develop and initiate underground mining. The total project develops an IRR of 15% and a net return of $4.7 million at a gold price of $600 per ounce. A ten dollar change in gold price will impact net return by $1.1 million. Reserves developed from these studies are shown in the following table>
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