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Gold/Mining/Energy : Crystallex (KRY) -- Ignore unavailable to you. Want to Upgrade?

To: John Dally who wrote (10164)	10/31/1999 1:30:00 PM
From: charred	Read Replies (3) \| Respond to of 10836

Hello John, I was always worried about the debt. I have made some rough calculations also, it seems that when the reserves are exhausted the company will be in the same position as it was before they started mining SG. However it creates cash flow which helps to pay the big salaries. MO makes about $35,000CDN a month. Quite a salary for someone who owns no shares. About the potential reserves, the intersections were located 50 meters below the open pit. Cash costs per ounce mined at the moment are $200US. In an open cut, the deeper you go, the more you have to move back the pit walls. This means that the waste to ore strip ratio will increase which will make each ounce of gold more expensive to mine. Simply put, to mine a ton of ore you have to move more and more waste. Pit walls usually have slopes of 45ø. I believe the cash costs will increase over the next years, the reserves may not be economic. Then again, gold may be $500US one day. Also mining this ore from underground is also expensive. But with a grade of 2 to 2.5 grams Au, I can't see it. Many underground mines have mining grades 5 times that. The company has done an excellent job at SG. Hope this helps a bit. Jeff