Hello WillP,
Just read over your answers to questions. Do you get paid for the articles you post?
I hate to pick, but it seems that you mis-understand a couple things. In case others haven't seen your posts, I thought comments should be added:
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Author: WillP -- Date:1999-07-01 07:26:50
Subject: The Midas Touch?
"1. Southernera has made significant improvements to the processing plant this year which will increase throughput by a minimum of 50%.
True. The plants all had a modular construction, which allowed for easy expansion. Isn't foresight a wonderful thing? "
The JV had problems earlier in 1999 with throughput because the ore was too sandy. They have added material (lowering grade slightly) and something called a re-crush crusher, which has allowed throughput to go up over the 2,000 tpd mark, with average production for the last couple weeks over 4,400 carats per day.
"Came at considerable expense...but it's worth it." See above
"2. The SUF plant is also geared up for processing bulk samples without interfering with regular production. The cores from the drilling on the multiple Marsfontein anomalies can be processed as fast as they are drilled. CF will take a liitle longer.
Which SUF plant? :-) True indeed. Like Ekati, they maintain a secondary plant for such work. The regular production cycle continues as normal."
SUF has three plants: the 100tph plant that is included in the JV (SUF has buyback option) and processes M1 ore, a 50tph plant that has been used for exploration/sampling, etc. and will now process the Leopard fissure ore, and a third 10tph plant that will be used for exploration and sampling.
"3. Ore from the Leopard fissure has been stockpiled and processing began June 21st, 1999 at approximately 1000 tonnes per day. SUF will collect 100% of the revenue from Klipspringer production.
True, technically. Setting up the mine created a fair stockpile. In any case...the target date was the end of June. They rarely miss target dates. Your 1,000 TPD rate is a bit high, according to recent data, but they may have decided to increase it...otherwise it may fall back a bit once the stockpile is gone. No big deal in any case."
Production will eventually get to the 1,000 tpd, but probably not for a couple months. When production hits this level, management assures me there will be no problem with a supply of ore for the next decade or so.
"4. The 4.5 million tonnes indicated by drilling on the Leopard fissure is the total indicated by drilling so far and is by no means the total resource of the Leopard fissure. The fissure system on Klipspringer/Marsfontein is at least 30 kilometers long and is open at depth. There are additional parrallel fissures which have not been fully explored to date.
Umm...true. The 4.5 for Leopard, I believe, is close to what may end up being mined. That was over a strike length of 3.45 km, as I recall. It's still open in both directions, I believe. But...I don't care. Why? At 1000 TPD, the 4.5 will last for well in excess of 10 years. Parallel systems? Absolutely. The area between Sugarbird and Leopard is intriguing, Sugarbird itself holds promise...and there are fissures all over the place. Or extensions of fissures...."
It would seem reasonable, given the modular structure of the plants to simply build another one and increase production as more is learned of the feasibility of various fissures, or even at other locations along the Leopard fissure, which appears to be part of the same system that begat M1.
"5. In the last year SUF has put two very profitable mines into production in South Africa which have made a huge contibution to the local economy. Exploration continues to increase reserves on Klipspringer and Marsfontein.
Of more importance is the contribution to SUF. :-)"
Agreed, but job creation is very important politically in the RSA. As we see even the developed, democratic Canadian guv'mints are holding guns to the heads of companies like Diavik (RTZ and Aber) and Inco, the ability of SUF to provide hundreds of jobs at Klipspringer and over 900 on the Messina project will lead to further deals down the line. Many other deposits lie un-developed in the areas around Klipspringer. That is why SUF was approached to develop Messina.
"6. At the same time SUF has been developing the Camafuca Pipe in Angola and it appears that it will be a huge low cost diamond mine in the near future.
Great potential. High risk...until the civil war ends. A good investment that probably came cheap for that very reason."
You should talk with management. While the investing community may see the whole region as one unstability, the fact is that UNITA does not act in a uniform fashion, but rather in small pockets. The area around Camafuca is home to a town with several hundred government soldiers, already supports new diamond production from a pipe slightly to the north, has not seen anything other than UNITA banditry and is deemed safe by SUF management and the employees on location. At the AGM, the implication was that about US$10 million would allow for construction of this dredge-thing, that would operate like an island. Photos are available as part of the slide show on SUF's website.
"7. In addition Southernera has aquired a 50% interest in the very advanced Messina Platinum, Palladium, Nickel project. The Messina property is very close geopgraphically to the Klipspringer mine and can be developed and put into production using very similiar mining techniques to those presently being used on Klipspinger.
I recall saying..."What are they doing!", when that news came out. Obviously, they think the project was too good to pass up."
At planned mining rates (could easily double), the projections show about $1.00 in earnings in about two years, with total capital costs of about US$25 million. SUF plans to get non-recourse project financing, which would leave shareholders with very little downside.
"8. Watch for some large scale alluvial diamond mining projects in Brazil which will pay for the exploration and bulk sampling of the numerous identified pipe targets on the Canabrava/Southernera JV in Brazil.
Ahhh...an astute comment. There hasn't been a primary source found in Brazil to date worthy of mining. Yet, alluvial diamonds propel Brazil way up the production ladder. SUF has an explicit rider in their JV agreement allowing them to pursue alluvial diamonds. (20% of exploration funds, I think.)"
Agreed.
"9. The five dollar doldrums will soon be a memory and a buying opportunity that one should not miss. Good luck to all the faithful Sufferers.
Probably. I'll respond to this one in a response to 'gapper', maybe."
The five dollar level may be home for a while, as long as the paltry volumes allow the annoying sellers from TK and Commission Direct to keep a lid on the stock. A couple big volume days (real volume, not crosses) would go a long way to helping the share price.
"Hey...nice work yourself, Midas! You been a SUFferer for a long time?
Regards,
WillP"
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Hope this helps your next story.
Regards,
Confluence |
