I compiled the following from my conversations with Barb Henderson (PFG IR) regarding Luicho
How did the Peru Symposium go?
This technical session went quite well. Since the symposium, PFG has received a number of calls from parties interested in more information on the Luicho project. These include a mid-tier and a major NA company.
When Tom Shrake, in the April 20, 2000 news release says, "These results should allow the cut-off grade to be reduced, which in turn provides additional ounces by adding lower grade materials for processing that would otherwise have been considered waste.", he means reduced to what? .31g/t or less?
Although Barb could only speak hypothetically, she relayed that for material which proves run-of-mine the cut-off could potentially be reduced to as low as .15g/t. When I suggested that perhaps all material might not be treated as run of mine, we had a brief discussion on the many factors which can come into play in finding ways to optimize recovery at a site. As example, a starter pit could first be initiated in the high grade area which could be milled, therefore obtaining a 90%-95% recovery rate. I note that this is for example purpose only as a mill would require electricity, which is not readily available at Luicho.
Financing, when will it be announced, and with whom?
Although Barb informed me, "A number of options are still being evaluated.", I got the feeling they are making some headway and a financing should occur within the next 2-3 weeks.
Status of access road construction? On schedule?
After a number of breakdowns, the bulldozer's engine finally seized 100-150m from the start of the 5km long ridge (ie. near the bottom of the steep slope they have been on since the start). Two new bulldozers are on their way, one of which arrived May 11. Upon arrival, the first bulldozer will be able to complete the final 100-150m of the steep slope, after which both bulldozers will continue working 24 hours a day. It is hoped that at least half of the time lost, will be made up.
Status of metallurgical testing? How will McLelland Laboratories perform run-of-mine testing?
Column leach testing is currently in progress. They were loaded approximately 1 « weeks ago and testing typically runs for 45-60 days, therefore with the delays in road construction, it is expected results will be out before drilling results are disseminated. It is expected results will show that a primary crush only will be required, if one is required at all. It is believed, the potential exists for run-of-mine leaching (that is, low cost), therefore a new bulk sample is required for testing and will be taken out using the road. This test would not be performed unless there was a "gut feel" that potential exists. Gene McLelland, who is extremely well considered in his field, has recommended and will be supervising the test. Although further testing of large samples from drilling will be required, McLelland performs a non standard test that has proven accurate in the past (shows reproducibility) and will provide a level of confidence.
Investor information sessions, when? Vcr, Cgy, Tor?
These sessions should take place in late May although a date has not been finalized as yet. They have been scaled back to include only Vcr and Tor. Toronto's session will more than likely be with analysts/brokers but may include individual investors (location to be determined) while the Vcr session will include individual investors and will probably be held at some public venue, like the Terminal City club.
Are you starting to arrange the analyst tours of the property?
Tom Shrake has completed his tour of the property and is flying back today (May 12). Barb believes the analyst tour will take place sometime in mid-June.
Geological map at homepage, when? Now that the map is complete, has any discussion occurred as to which holes will be drilled first
Map should be added to the PFG homepage late next week. Drilling will more than likely begin in the central zone, in a fence formation ((150-200m apart, 4-6 holes per fence). Drill holes will be laid out in advance but as is the case with all projects, it will be revised if necessary, if it is found faults are moving in a different direction for example. The map will be used to outline drilling, but nothing definitive has yet been decided. Tom, Dave and Pete to decide.
What will be in the next release, when, next week? More cliff sampling, any more additional on depth potential?
The news release will contain information on further surface sampling, cliff sampling from the central area and the east side of the ridge (just outside of the corridor) at the south zone and an update on road/ access road construction. More than likely a news release will be issued May 24-25, it is dependant on Dave who is onsite. He gathers the data and forwards to PFG head office. Of interest: Barb explained that Tom Shrake was very impressed with his visit to the Luicho property, his first in a few months. She used words like "he is extremely excited, and thrilled even" about what he is seeing at the property. I'm not sure if this will be on this next release, but she informed me that within the sandstone horizon and below, as indicated at the homepage (see below) there are areas with shale units. Below these small-interbedded shale units, there is the possibility of multiple poolings of higher-grade material. As example, one of the higher-grade gold channel samples taken (channel 119) in the vicinity of and beneath one shale unit measured 160 g/t.
From homepage pacrim-mining.com
The Hualhuani Fm is subdivided into three units - a lower unit (approximately 90 m thick) dominated by sandstone, carbonaceous siltstone and shale, a middle unit (approximately 350 m thick) consisting predominantly of sandstone with interbedded shale and siltstone ...
Last press release said "a site will be sought for a 1/2-tonne low grade sample for the purpose of conducting run-of-mine (uncrushed) leach tests." Has the site been found, will it be surface or tunnel samplings, or will this involve drilling. What exactly are you looking for in a site. Barb believed that Tom, in conjunction with the other geologists picked the spot while on site although she had not yet confirmed this and could provide no info.. I'll follow-up in another call.
What is considered as an average gold recovery. Tom's comments in the latest news release were, "We are also working to characterize the carbonaceous materials, which we expect will ultimately provide average gold recoveries."
An average grade would be considered as 65%-75%
The road, how good is it? Phil's question:
Barb mentioned the road is essentially a "cart track road, which will allow a drill to get in and out" No gravel, no paving, no passing lane Phil! ;-)
Barrick news regarding Diablillos?
None
Hope this helps,
Qd |
