Hi John,
No have not seen either of those two - so something to add to the DD list!
General comments - Not overly excited with plays in the Philippines. Can't remember why I'm not a fan, but have negative impressions.
As far as Turkey goes... I though the government or greenies had cracked down on mining and Operating Permits were hard to come by?
YOU NEED TO UNDERSTAND THE DIFFERENCES BETWEEN OXIDE AND SULFIDE MINERALIZATION - IT IS CRITICAL!
In "sulfide ores" the gold is bound up in a matrix with sulfur being minerals. This is significant because, in order to free the gold, the processing is often more expensive.
Processing sulfide ores is the reason GSS built the BIOX plant and the difficulties commissioning it nearly bankrupt the company. I think they are still running at less than design capacity.
The other method of liberating the gold is "roasting" where the ore is heated to drive off the sulfur as a gas. This process is also EXPENSIVE since it is heat intensive (high energy costs) and the off gases require treatment: creates a health, safety and environmental problem other mills don't have. Those issues are a large part of what nearly took YNG down and were the reason QEE dumped the Jerrit Canyon plant.
So when you see a significant percentage of sulfide ore in the resource statements, draw a jaundiced eye toward the Ops Cost, and if it is a start-up operation - add a few extra months to the start-up time till commercial production.
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How about investing in a Gold Mine in Viet Nam?
OYM.to Olympus Pacific Minerals produced 11,191 and looks on track to produce 40,000 oz in 2009 from 3 mines. It has a market cap of ~ CA$ 71.
But I rather like CSG.v Castle Gold, They produced ~16,000 oz in 2008 and are on track up production to a rate of 29,000 oz in the first half and then up the rate to 52,000 opy in the second half of 2009. The company had some problems in the past but new management has turned things around and is making progress. They also have been looking at strategic alternatives, so a sale is possible and could bring a quick 25% to 35% return. Their market cap is ~48 Million and if they deliver on production, with lower costs I think this one is an easy double from here.
castlegoldcorp.com
Good luck trading,
H3 |
