After wading thru all the shuck 'n jive from dummies who asked stupid questions, here's more "fleshing out," I'm sure Terry Swift w/be weighing in as he asked some of the more intelligent questions posed to management after all were READ the press release. Congrats, Terry.
The company is publically acknowledging for the 1st time, 500,000,000 tons of material at an average of 1.24 grams of gold per ton.
They are rock valuing this tonnage in the $15-20 per ton range.
Refugio is rock valued at $12 per ton.
Even at lower end of $15-20 per ton rock value, $15 per ton is a 25%
improvement over their Refugio "values."
A great deal of time was spent on discussing re: deployment of additional drilling rigs.
Of the 8 holes released, 3 of them were "dry holes" which means they
have defined the outer limit of the deposit in that ONE DIRECTION ONLY.
This report including the first breccia strata at least, indicates gold in the 15-18 mil oz range currently, (well on its way to the 25 number that Clive Johnson stated on CNBC 2 wks ago!!!) You'd be surprised how many listening to the conference call did NOT know how
to calculate the tonnage and gram numbers to come up w/that 15-18 mil
oz range. I had come up w/11 mil oz on the first report back in June,
so this is a 4-7 mil oz improvement from where I sit, and that is
very good news.
As I said much earlier in this string, Clive knows things that make him & the company feel VERY VERRRRRRY comfortable making 25-30 mil oz claims on the phone as well as in person. The company more or less
indicated today that the market has only valued the entire company at
a 3 mil oz find and are frankly as puzzled as the rest of us on this under-evaluation. YeeeeHAW!
The cost to build a mine is currently estimated to be $1 Bil, which will take 3+years. The anticipated production will be 1.2 mil oz Au
each year and the equivalent in gold of COPPER recovered for an additional 500,000 oz, or a total gold EQUIVALENT of 1.7 mil per year recovered, giving the anticipated mine a minimum of an 10 year life.
Majors are interested in at least a minimum of 7 so this is good!!!
Very Very Good, especially since they are still drilling!!!!!
They anticipate starting to drill Quebrada next month, which is 100%
owned by Bema, so do NOT confuse Quebrada w/Cerro Casale==> AZS-V
Regarding Drilling Roman, there are previous drill reports from others in the past to give them an idea of what is there, but they aren't ready to announce a drilling program on Roman just yet.
One of the drilling rigs they are bringing in on the Cerro Casale deposit is what is called a "wildcat rig" which they will use to poke all kinds of holes just to see what they can "hit."
The most exciting part to me I guess was the geological discussion which for the sake of simplification will be stated thusly:
Those in the geological know in Chile concur that breccia zones don't just occur once in those formations down there, but multiple times.
In answer to a specific analyst, the company confirmed presence of
geological evidence in current drilling efforts to date of more than
one breccia zone stacked on top of another breccia zone occurance on
this property. To that end, the company is devoting one drilling rig
to just test breccia zone occurances. The more breccia, the more gold, folks.
Aaaaaaaaaah, I'm satisfied.
We may get a pop tomorrow after all.
Doesn't really matter. BEMA has a tiger by the tail and a weasel in the diesel. I'm NOT sellin'!!!!
O/49r |
