Claude:
I had a chance to communicate with the Moellers about the Clifton
mining operation. Whatever the price that they were able to get prior to the edict, whether $.23 a pound, or more, the problem is that
no one in the U.S. will purchase the lead concentrates. In effect, the smelters are not taking any such ore. The management has looked
into shipping the ore to other counties, such as Canada and Mexico,
but the only feasible recipient was a Canadian company which is
currently overrun with raw ore, and cannot accept Clifton's
lead/silver concentrates for a number of months.
Furthermore, they cannot sell the concentrates to Handy and Harman
with whom the company has a contract, because the concentrates contain
lead. So, at least for the time being, the silver lead operation will be placed on hold.
As a result, they are focusing their attention on the Cane-Springs mine, which has very high-grade gold ore. They anticipate mining ore
averaging 1 ounce of gold/ton and this ore contains no lead
and will be readily sold to Handy and Harman as dore bars after
processing through the plant. They have also begun a colloidal
silver operation, which will have high profitability.
Finally, one of the goals of the company is to expand the
gold resource, which currently according to estimates,
contains enough reserves for mining and milling
sufficient to provide significant cash flow for the next two years.
Regards
Dan |
