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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 (11506)	5/18/2006 12:03:08 AM
From: loantech	Read Replies (1) \| Respond to of 78417

Jack, Had a busy day mostly off line. I just read the President letter, bullet points and the MD&A in the GGC annual report. I left the numbers to others. Thought I would post what I liked and to review what you stated in your post for those to lazy to read. I found this very exciting for GGC as I plan on holding a good number of shares for quite some time into the future: For 2006: <Genco is evaluating the reactivation of Nazareno and Mina de Agua, two of the former producing mines within the District.> <Our Temascaltepec Mining District historically contains high-grade – even bonanza grade – ore. The Spanish, without the benefit of our technology, enjoyed great mining success. Within theboundaries of the District, we can revisit former producers like Mina de Agua. This Mine flooded while in the midst of bonanza-grade ore production. It is no small wonder that in the nineteenth and early twentieth centuries, both the London and Paris Exchanges buzzed from time to time with the prospect of revisiting Mina de Agua.> Sounds good to me the time is right, metals at are high prices and we have the technology to dewater. This is nice also: <In the early 1900’s, the El Rincon Mine located in the south-eastern portion of our District was one of Mexico’s richest silver mines. The uncertain political climate of the time, and the accompanying inadequate reinvestment, resulted in the shutdown of this operation. The question remains: how much still lies undiscovered? It is an exciting prospect to control an entire District with a rich mining history and untapped potential. La Guitarra Mine, in the central area of our District, has experienced a dramatic turnaround under Genco’s management.>>> <Inferred resource 2,300,000 484 2.00 35,790,184> About 800K AU equiv but that should increase considering this: <The reserve/resource calculation was estimated using blended US$57/tonne cut off grade, a -10% grade correction for gold and -16% for silver, a 10% dilution factor at a grade of 90 grams per tonne (gpt) silver and 0.6 gpt gold, a tonnage factor of 2.7 tonnes per cubic meter of rock, a silver price of US$4.50 per troy ounce and a gold price of US$310 per troy ounce.> This will help build a reserve: <Plans for fiscal 2006 include La Guitarra Mill upgrades, expanding production at the San Rafael and La Guitarra Mines, over 3,000 meters of new underground development, 3,000 meters of diamond drilling from surface, over 5,000 meters of underground diamond drilling and approximately 370 meters of new ventilation raises.>> <During the second quarter the Company’s Management plans to add a second mill shift and begin increasing production from the current 145 tonnes per day to over 200 tonnes per day.> Should help build profits. I read a remarkable 1 sentence statement from a NLW regarding GGC but I imagine it is a gross violation of ethics to post the one sentence without permission. <ng> I like GGC and see few other profitable silver/gold mines with the low market cap and the upside production and exploration potential that CGGC has. tom