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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: ubetcha who wrote (30606)	2/23/2003 10:08:29 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 34075

<So why is drilling all these hole to prove reserves better than actually doing it in mining?> If you dont drill or trench or do bulk samples (or whatever other sampling methods), how will you know the concentration, distribution and grades of the gold. This is vital information that will allow them to make up the best mining plan in the most economic way. Miners cannot blindly take ore from a location unless thye have a very good idea of what they will collect. <If you are a farmer do you always get exactly 48.5 bushels to the acre?> No for sure. But farmers can tell by looking at the first few inches on the top if a given piece of land will grow stuff. Miners do not have this ability. They dig to find out if their is potential to harvest gold. Since exploration is usually cheaper than production, they explore before they produce. Granted capex in placers and alluvials are much lower than in hard rock or heap leaching mills and plants. And exploration can be much more expensive. That is why GE is probably taking the good route. But they have to live with the consequence that they will not have quantifiable proven reserves if they do production only.