Eric: right now, I do not know if the local guys can have production costs lower than South America and Russia. I think that those guys production costs are about $200 or so per ounces. The average cost of production of gold is probably around $250/ounce. Now, if all IPMCF goodies are in the form shown in the micrograph in the annual report, this is elemental metal, and the gold particle seems relatively large (almost 1 mm in diameter), and thus not too difficult to extract. I am worried however that normal gravimetric techniques might not work, then the cost of extraction skyrockets unless they start using unconventional methods. I do not think that IPMCF will, since they are relying for advice on the "experts" from the mining industry. I am also worried about the business plan that call for initial mining in October of 1998. They can die two or three times from cash starvation before we see any goodies extracted. Remember that these people have already accumulated $30,000,000 in deficits, not counting $10,000,000 in capitalized exploration costs. I am worried that as they start and see difficulties, and someone shows them something "more promising", they will do as before, not get over the technical hump, drop the project and go to something else hopefully "less risky" as they have done before.
You really have to ask yourself, what are they showing for $40,000,000 in expenditure short of great promises.
Zeev |
