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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: jackjc who wrote (2632)	12/2/2005 10:09:29 PM
From: E. Charters	Respond to of 78419

What I understood that the mill was based on the old Pan Empire mill and was rebuilt on an Ontario Go-Mill grant by ACA Howe, a long-running CDN consulting company. It was designed a a modern Carbon-in-Pulp gold cyanidation mill. The idea then in the early 1980's was to take mill feed from gold properties in the area and do custom milling. ACA Howe built/ran the mill but the company that headed it was an Australian Company called Pan Empire. There was some intention of restarting the Northern Empire Mine which has considerable good looking ore and extensive unworked qtz veining from surface to at least 1800 feet deep. They never got the contracts from local property owners. I represented one such owner and in approaching the people at Empire I noted they were reluctant to get into deals where they would mine the actual property. They did chase some people but they could not get satisfactory deals. None of the owners had the scratch or the intent to get into mining production. If any of them did, they would probably have needed more tonnage to pay back than the mill could handle. The Gold price of the 1980's came too late to develop capital for mining. Flow thru financing would not then do underground capital development and flow through was all you could raise back then. The only mine that ran in that area for any number of tons was the Louanna Mine of Cumo Res - Mining Corp. I worked at it as a sampler, surveyor and assayer. They mined 150,000 tons of 0.25 ozs/T gold ore. It was about 75 miles north of Nakina but still in the same B-G Greenstone belt as the mines of that area. During that time Roxmark went JV with Ateba mines and started some underground exploration on the Magnet mine which had closed in the 1940's. Ateba would not go into production, preferring to keep drilling as long as the flow thru market held out. At the time too, Rox did not have a mill. Mining Corp had closed the Louanna, but the mill was considered but not taken. Rox was also not in a position on most of their properties to finance both mine and mill. Time had to pass before the iron was hot. That time has come, but it may go if they don't see a lot more money. EC<:-}

To: jackjc who wrote (2632)	12/2/2005 10:19:32 PM
From: E. Charters	Read Replies (1) \| Respond to of 78419

Does the Leitch contain another million ounces? Well it may. At some point you have mined all the grade you are going to mine from a certain area. Since the Leitch stopped mining in 1968, we can safely say that this was not the case. Surface structures along strike appear to be similarly mineralized. Why did they not mine them? Well for one they did not own them at the time. What is more important is that each property may have that much ore more potential to find additional ore. That much has already been proven by modern exploration dating up to the late nineties. But it would take many years to run everybody's face in it. In addition it takes mining to prove the grade could profitably extracted by modern methods and withing restrictions put on mining in recent years. My far braver question is, are there 5 million extractable, profitable ounces left in the camp? They mined 5 million. I think so, based on all I have seen in similar gold camps and what I know is left in these and similar mines across Canada. Cost to extract all the gold over mine life might be 1.25 billion. About $50,000,000 per year. Total capex is hard to say. About half that I guess. EC<:-}