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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (1655)	7/19/2001 12:57:04 PM
From: russwinter	Respond to of 4051

Yes, Chester Millar AND the deal NGT made on a top quartile deposit(Mulutos). About US 7 million total due by end of 2004. They paid 250K already. Another US2 million is due to PDG by 2-28-02 and if they can pay another 2 million by year end 2002, it knocks the total price down to US 5 million. Looks like Millar is going to do a PP for a million US so that they can conduct a heap leach test of 50,000 tons this fall. In the short term they have a few major loose ends to wrap up. Final scoping study is supposed to be out by now, plus the CDNX has given them notice they need to arrange CDN 1.6 million financing by 7-15, and 2 million by 8-30. They get 500K US from Alamos, but that won't close in time. Well, my calendar says July 19 today. I am (was) looking to buy if those issues were resolved, as we almost always get free looks on these juniors. With Millar on board you would think the financing for their game plan here would come together? If this outfit can't raise a few bucks with the tin cup, something's really wrong with the capital markets for exploration.

To: Claude Cormier who wrote (1655)	7/19/2001 2:25:48 PM
From: russwinter	Read Replies (1) \| Respond to of 4051

In looking at the economics of LC (and KM88 including Brisas), can you see a huge "economy of scale" operation that could bring processing costs (below $4) down enough to pencil in all that one gram, low copper $8-10 rock.I guess the payback period is the problem, but there is unlimited tonnage there. Is there a point size wise where costs just hit the wall? Any idea where? In other words if you spent the capex (billion?)to support massive tonnage, would it work?