Mansfield Minerals-MDR.v
Refer to technical report:
http://www.mansfieldminerals.com/i/pdf/Lindero-TR-May-2010.pdf
Below is my understanding per conversation with President Gordon Leask:
See Environment section on bottom Page 56 (ie 4-13)
*MDR got comments/deficiency report in May 2011 (their IIA submitted in Nov 2010). MDR responded in June, within 30 days.
*There have been no more comments/deficiencies cited, and MDR expects no more comments or deficiencies based upon their recent conversations.
*The commission is now preparing the detailed technical reports (Dictamenes Tecnicos) and final report (Final Unico). The Dictamenes Tecnicos take considerable time to complete, especially since first open pit mine in Salta.
*Following the Final Unico, a Technical Legal Report follows shortly thereafter and a formal resolution thereof called a Declaration de Impacto Ambiental, or DIA.
*Most of the Permits listed on Pages 51-55 (4-10 through 4-12) can be issued upon receipt of the DIA, including the Mine Permit
Community:
*There is a village of about 220 people, about 40 miles away from the mine site, that has to sign off on construction. Several of the people in the village have been employed by Mansfield during their development work, so no problem foreseen here.
*There is no problem with NGO’s in the area. Evidently, Green Peace got in trouble with a Salta Judge in falsifying data on another mine project and the Judge barred these Green Peace activists from ever showing up in Salta province again, under threat of immediate incarceration.
*Salta Province remains a mine friendly locale, NGO's have little to no visibility in Salta, and MDR continues to maintain good community relations within Salta province.
Mining Permit and BFS
*My understanding is Mine Permit will be issued at same time as DIA approval.
*Most of the permits come via Salta provice approval rather than from Argentina
*Bankable feasibility study will follow Mine Permit/DIA, and is expected in about 2 months (ie November 14).
*In discussion with other mining companies to be acquired, and they prefer one company over the others, but whether a deal can be done on fair/reasonable terms is not assured. MDR recognizes that if they go it alone, their share price is likely to take a hit, so they prefer to be acquired.
See Power section on Page 64 (ie 5-4)
*MDR now leaning toward diesel rather than natural gas pipeline for Power
*This will reduce capex but increase cash costs. MDR believes this will give somewhat better ROI and definitely decrease payback period. At $1,800 POG, Gordon believes payback could be under 1 year.
*Nat Gas pipeline option has had significant cost increase since May 2010 Tech Report and/or otherwise cost was underestimated by AMEC.
*Cash Cost estimate differential: NatGas is $.07 per kwh vs. diesel at $.24 per kwh.
Cash/Finanacials:
*Current cash balance is $5M as of August 31. Cash burn of $3.1M since February 28. Bulk of feasibility study expenses have been paid. Normal quarterly burn rate of $450K per quarter excluding any drilling budget. So with no drilling, have more than enough cash available for at least the next 3 quarters, likely more.
*Annual fiscal year financials should be out around September 20th with updated MD&A, should be worthwhile reading... |
