Carl:
Yes they are hard-pressed for cash, and the drilling is on hold for
now. However, as you suggested,the Mexico mill/arrangement might
pan out yet. They have three projects that will produce cash flow,
and they are being very careful. One is the colloidal silver, which
is well underway, and very profitable. They have control of a company which will be producing it, and provided us with some samples of the bottled product at the Chicago show.
Second, they have been asked to reclaim a silver dump site, so
that the silver recovered can be sold. This is underway, but of course only a small project.
The Cane-Springs mine venture, however, is a very big deal. The pumps
are on site and working as we speak, to dewater the mine. The
gold is high grade, as I previously mentioned, and will be produced
at a very low cost.
They do have some low-lead silver ore and will be processing that
rather than the lead/silver sites that have a high lead content.
The proposed drilling program of 4 holes is to identify whether
there is continuity of the strike between the Cane Springs mine
and another old mine at some distance from the former. That mine
(whose name I can't recall) also has high grade ore, at around 1/2 ounce of gold per ton. The geologist who had worked on these properties years ago, had planned to do this step out drilling in
order to establish his theory that the two deposits were continuous.
It is that individual who fortuitously presented the managment with the old maps, ore zones, etc.
As soon as they can get some cash, that will be done, and if they
do hit mineralization we could begin to assume that they might
well have a very substantial, long-life deposit of gold. From what
they already know about the deposit, they have enough high grade ore
to process for 1 to two years.
Regards
Dan |
