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

To: LoneClone who wrote (36502)	3/21/2007 10:11:29 PM
From: E. Charters	Read Replies (1) \| Respond to of 78419

You can get these kind of values over small tonnages in Ontario and Quebec moly and moly-bismuth veins. The veins at Onslow Twp in 1916 had short runs of that kind of grade as did the surface indications at Indian Lake at Preissac. The surface stuff at Indian Lake did not hold at depth and the mine run averaged 0.5% MoS2 or Mo. Hard to find out. Onslow ran at either 1% or 0.5% depending on who you believe. It was a long time ago (1916) in the Onslow operation and although it supplied 95% of the world's molybdenum at the time, the reporting of grade and production was probably very poor. Roxmark had one assay of 30% moly sulfide over one foot. I have hand samples from the Rox vein that run over 20%. I have one channel sample from our Quebec operation that runs 0.5% moly over 28 feet. To me that is rich because of the width and lack of overburden. Every foot of ore (in a vertical sense) I take from that vein contains $330,000 worth of MoS2. Obviously if we could find cheap milling and shipping, it would pay to open pit the vein as we could take out 30 to 40 million in ore at a cost of perhaps 2.4 million in mining costs. Unfortunately the nearest mill is 350 miles away and it will cost 42 dollars a ton to ship the or there. Perhaps prohibitive and handling losses are always a lot more than you think. Rail is barely possible, but base costs are about the same in magnitude and there is a double handling charge that could come to about 12 dollars a ton. Milling would probably get charge out at about 40 dollars so there goes all reasonable profit. A mill would cost about 20 dollars a ton, and 8 dollars to operate, so the base cost would be 36 dollars a ton. Doable indeed. But just try getting it financed. You have to sell the farm to bring in the crop and everyone with a larger orebody or a supposedly richer one elbows you out of the way for cash, when its apples and oranges really. Grade means nothing so much as width, access, costs, total ore, metallurgy etc.. EC<:-}