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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 (9428)	4/20/2006 12:37:36 PM
From: E. Charters	Read Replies (1) \| Respond to of 78416

There is a report on 321 gold? More than a thumbnail? Do you have a link? EC<:-}

To: jackjc who wrote (9428)	4/20/2006 12:41:14 PM
From: E. Charters	Respond to of 78416

Found it. This is the text. Roxmark spent the last five years acquiring and consolidating their holdings in the camp. They picked up the high grade Leitch Gold Mine and an excellent moly property. They kept a sizable portfolio of medium size gold projects and were content to keep the doors open and the heat turned on. With higher prices for gold they began to increase the pace of their activities in 2005. They already own a 200 TPD mill in Beardmore which has been inactive since 2001. They recommissioned it last year and upgraded it with a new state of the art Knelson concentrator and a Gemeni table for fine gold separation. In addition, and planning for the future, they installed a moly floatation circuit with disc filters and a concentrate dryer. Then President, now Vice Chairman David Malouf, showed me around his various projects in November for two days. I was impressed. They have some real mines and a good plan and I think they will succeed. I've said it before and I'm sure our readers will hear me say it many times in the future, I like the real miners a lot more than the Rhinestone Cowboys of the penny dreadful Vancouver stocks. In my mind, the very best miners in the world are the garimpeiro miners of Brazil and Chile and their brethren in Burkina Faso and Tanzania. All of them make a profit and profit is a four letter word in Vancouver. If the artisan miners can't mine at a profit, they don't mine. The most promotional Vancouver companies will drill as long as some fool will belly up to the bar and fork over more hard-earned cash. Mexican miners drill a hole or two until they find ore, then they drift until they run out of of pay dirt. There are companies in Vancouver that would drill until they hit China, then do a Private Placement or three. I like the real miners. They will be the salvation of the industry. Roxmark has six past producing gold mines which collectively produced 2 million ounces of gold. They have a fully functional 200 TPD mill, a flotation circuit and have been producing gold in small quantities. In addition to the various gold properties, they have a high grade molybdenum deposit called the Nortoba-Amorada-Tyson prospect located in the Beardmore Mining Camp in the Thunder Bay Mining District. David Malouf's plan is to put the high grade surface moly ore into production this spring/summer. The moly has a historical reserve grade of 1.72% MoS2 which would be equal to about 1.032% moly oxide worth some $520 gross metal value per ton. Roxmark has outlined about 3000 tons which they have applied to mine via a bulk sample permit. The objective is to prove the capability of the mill and to provide the cash flow to further develop an underground mine where he has already outlined 6,000 tons of the 1.5% to 1.7% MoS2. The permit for the surface bulk sample should be in hand soon and by the time they have mined the surface ore, they should have the underground permit. I like moly, it's an interesting metal. Some 80% of moly mined, goes into stainless steel. The rest is used in industrial chemicals and in aerospace applications. China is the swing producer and their production determines the world price. Most moly is produced as a byproduct of copper production so the price doesn't have a major effect on supply. China has shut down hundreds of small moly mines in the last two years and since all their production goes straight to steel mills, the price of moly rocketed from $2 a pound to as high as $38 before stabilizing in the $24 range. I like miners too. Rox I know to be miners. Dave always said his best mine was a small pillar recovery operation in Chibaugamau. I believe there are more than 6000 tons outlined in his last drill program. There may be as many as 200,000 hardrock moly tons mineable in the two vein system over 2400 feet. I realize all that stuff has not been defined yet, altough the vein systems are seen on surface over that entire distance. My thinking on the tonnage is based on known strike divided by 2 to depth drilled so far at 4 foot mining width. We then take a hit rate of 50% on that vein. These figures are as follows. 2400' long/2 = 1200 X 1000 foot depth X 4 feet width. divided by a tonnage factor of 12. = 400,000 divided by 2 for cut back factor = 200,000 tons. I think the recovered moly oxide metal would be about 1.2%. So 480 dollars smelter recovery at 20 dollars US per ton = dollar recovery of 96,000,000 US. Or 109 million CDN. time to mine would be 2 years at 300 tpd. All short tons. So 54.5 million dollars CDN smelter return is possible. This is 54.5 cents a share before costs and taxes. Perhaps 20 cents real earnings per share. EC<:-}