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

To: Mr. Aloha who wrote (8642)	3/30/2006 1:20:37 PM
From: E. Charters	Read Replies (2) \| Respond to of 78416

Well we miss a lot in a lot of small potential producers. Then when you are not looking they have grown. Roxmark was driven for 15 years by exploration partners who would not produce. They had no mill. The perception today is one of slow growth and small scale. In fact this prejudice is not justified if they can get into production this year. It opens the doors for them. They have also got a much more impressive property base than they had. Management too has undergone some subtle but important changes as has the general atmosphere in investment that favours production as having better legs. In Roxmarks case with mature resources now it makes a lot more sense. Grass roots drilling would initially sell better, but it is prone to a lack of excitement in presentation of the picture. Most stories that get in your face have huge money behind them. Wheaton River, Queenstake, Kinross, etc. These gold stories came from nowhere with some behind the scenes investor acclamation in Toronto whose brokers were scions of the old Falco gold shareholder base. What this underscores is that a gold production business can be built by applying money. Rox did it totally independent, on the street. TSXV would have been too slow. It does scale back the start up however. Rox needs about 4 million to get legs underneath it on the moly. It has a shot at it. Without a better stock price and on the CNQ it is hard to get the brokers to co-operate. They also want to avoid dilution where they don't have to and it may be premature to borrow money. The reality is they need 10 million to do the Empire. Although the Leitch small trench test was inconclusive grade wise it did show the mill works. In fact they had a problem with the leaching and this factor will work better later. It's been worked out. If they were to do the Leitch and the Empire, (the ore is more or less defined at an inferred level) then they have to fork out 20 million. I would not do that at 17 cents. The question is, how-to? If I had the stock at 30 cents I would consider doing a feasibility, a ramp, defining ore, and perhaps borrowing a bit. That breaks down as follows. Drill --------------------------------- 500K Mill upgrade ------------------------- 1.5M Ramp or headframe and drift ------- 1.6 M Drift -------------------------------- 1.0 M Raise/Development -------------------- 380K Underground drill --------------------- 250K Mine 50,000 tons ---------------------- 3.0 M Milling and Overhead ------------------ 1.5 M Total --------------------------------- 9.73 M Ounces/$Return 20,000 ozs = 12.6 mill. They need 6 mill upfront. They may be able to get a good portion of that doing the Moly. EC<:-}