SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Mountain Lake Resources Ltd ( MOA) VSE
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Angelo who wrote (305)4/30/1999 9:26:00 AM
From: Peter H.   of 598
 
Angelo...to process alluvial gravel the cost is approx. $250 (U.S.) per 100 tonnes. At Klipgat it would be reasonable to expect 1.5 carts/100 t. These are excellent gem quality diamonds and price per carat is expected to be $450 U.S. This is based on the quality of diamonds mined to date on the site and adjoining properties.

So...for every 100 t. $450 x 1.5 = $675 U.S.
minus $250 U.S.
---------
$425 U.S. per 100 t. profit

Now the Klipgat property is one concession in a group of six adjoining properties. There is an absolute minimum of 10 million tonnes of alluvial gravels here, perhaps twice that with all properties combined.

The operator expects to reach full scale mining in mid September of this year to produce just over 900 carats a month.

The agreement Mountain Lake has with the (new) current operator is to receive 15% of gross diamond sales.

So..... 900 carats x $450 U.S. = $405,000 U.S.
Mountain Lake share x 15% = $ 60,750 U.S./ month

Now the other alluvial diamond project is what was known as the Mountain Ash property. It consists of three adjoining properties. There are 34 million tons of gravel proven here.

The diamond grade is as good and perhaps slightly better here. But lets say its the same. So using the same figures the income will be approximately the same or if you wish the property could yield close to $200 million U.S. over its mining life. Fifteen percent to MOA brings in $30 million U.S. Remember too our costs are nothing -- the operator bears all operating costs.

Of course nothing is guaranteed. What we do know is the properties do hold high quality diamonds and we do know there is a lot of alluvial gravel there. Will the grade be consistant throughout? Will the price of diamonds hold? Will they have enough water to process? These are questions which add to the risk and noone can answer. I have been holding MOA for a long time and believe they have an excellent shot at making these properties pay. We have suffered through many delays in the past two years but am now hopeful that the worst is over and mining can progress relatively unhindered. I like the odds on this one.

Starpoint ... too cold for getting on the water but should be painting the boat in the next few weeks.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News