Tom, I found a site called sedar.com which makes VSE
securities filings available (this may be familiar to you). I
started reading the ones that came up on a search of El Callao, and this information was in a "Form 61" Schedule B, titled "Supplemental
Information for Period Ended June 30, 1997". The part I referred to:
"In the second quarter of 1997, the Company announced an increase in the geological resource at its Lo Increible Gold Property in Venezuela. The previous resource of 835,000 ounces of gold was increased to 1,979,000 ounces of gold utilizing a 1 gram per tonne of gold cut off. The new resource was calculated from the La Victoria and La Cruz deposits which were found to host 16,573,000 million tonnes of ore having an average gold grade of 3.71 grams per tonne. Utilizing a 3 gram per tonne cut off, 7,340,000 tonnes of ore were identified having an average gold grade of 6.63 grams per tonne outlining 1,565,000
ounces of gold. Exploration drilling continued at La Victoria and La Cruz during the second quarter. Drill hole results were released in late May that continued to expand each deposit which both remain open along strike and at depth. Drilling also commenced at the La Experencia area of the property located between La Victoria and La Cruz. The Company is currently working on a scoping study on the property to justify building a milling facility. The scoping study is being prepared by an independent engineering consulting firm and will be ready in mid-third quarter. Management believes La Victoria and La Cruz deposits can be mined economically utilizing both open pit and underground methods. Financing In June 1997, the Company raised $1.96 million by way of a private placement of 1,400,000 common shares of the Company. Bema Gold Corporation was the sole participant in the placement taking its current holdings to 16,044,430 common shares or 37.9% of the issued and outstanding shares of the Company. During the quarter the Company expended U.S. $1.6 million towards consolidating its land position surrounding the La Victoria and La Cruz deposits. Management believes that this consolidation will be instrumental in the future development of the Lo Increible property (by securing access to the ground necessary for construction of a mining facility should a positive feasibility study be completed)."
As you see, they spent the bucks (.03 per ECM share)on what you understand to be barren ground, good only for a mine. Interesting
that they don't even MENTION this, we have to dig it out. Sheesh!
As I've said before, I like this series of deposits they've found, but I still worry. My question to everyone is, in this market is ANY project gonna be feasible and financeable?
John |
