Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: baystock who wrote (2325)	11/19/1999 12:25:00 AM
From: Claude Cormier	Respond to of 8010

<<Frankly I am not convinced this deposit is economic.>> What make you think so given that Coeur D'alene Rochester mine is economic and has much less favorable parameters ? For example, the strip ratio. I am sure you know the impact of this factor on economics. At Alamo Dorado, Mintec calculates a ratio of 0.39:1 versus a bit more than 1:1 at Rochester. Next the grade.. the grade at Alamo Dorado is now some 21% higher than at Rochester. Third the recovery rate... It is 59% at Rochester for the silver. This is because Rochester has a lot of Argentite which is a sulfide that liberates the metals with difficulties. I read that at Rochester, ore can leach on the pads for 5 years and must be fine crushed. At Alamo, the majority of the mineralization is cerrargyrite, a silver chloride that is softer and leached very well. That is why analysts think that an average recovery rates of 70% at Alamo Dorado makes sense. But it could be a lot higher depending on the crushing size as some tests came back with revoveries between 89 and 97% for fine crushed materials. What else... infrastrucure ??? They are in Sonora State Mexico.. the best place for mining... water and electricity are nearby. Road acces and all. The operating costs are now forecasted at US$1.71/ounce for the first 11 millions tons, US$2.22 for the next 27 millions tons and US$3.39 for the low grade remaining tons. These compare well with Rochester operating costs in the $3.50-$4.00 range. And keep in mind that Rochester is profitable. Mining cost are estimated at US$0.90 and processing at US$2.80. These are almost the same as Rochester. In short, Rochester has more leverage for CDE because any incrementals in the price of silver will have more impact on CDE than they will on Alamo DOrado... But given stable prices at current levels, Alamo DOrado will be a lot more profitable. That is why I think CDE, with its $100M in the bank and knowledge about heap leaching silver, should make a bid for BAY...eventually. RR, comments ?