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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 (47871)	8/22/2007 3:42:31 PM
From: E. Charters	Respond to of 78404

I concur with most of what D. Malouf had to say that you related. I would add that I hope they do a proper resampling of the moly vein. That whole property has about 5 good gold veins with high grade gold bulk sample on one. The moly vein itself ran 1/10 of an ounce in gold, and showed smallish but technically 'massive' nuggets in places. A really proper economic assessment requires really careful blasting of the vein, and selective mining of shorter ( <100 foot) shoots, and careful eyeballing of wallrock values to maintain grade. It is thought that massive inclusions of barren material along the strike and selecting only the quartzose vein material by their blind blasting methods might have led to huge dilution. The mill start up did not run well often, and the true tailings content is unknown. This may not take place until they can refinance at more favourable prices. What date resampling will take place is anybody's guess. Due to the sag in junior price across the board, the refinancing of Rox will take perhaps until the spring. Some of their more senior money was most probably heavily exposed to ABS troubles. The Empire itself is a considerable system. Larger strike length than 90% of gold veins in Canada. It is hampered to a degree by narrow vein width, but shows ample parallelism. They have to develop a technical mining method that will keep the tonnage per man day above 5, closer to ten. My belief is that the methods are there, but relatively few contractors are expert enough to effect this process. Dave Malouf has a natural aversion to contractors, but in this case, if he wants to advance their mining future, he had better rethink. CVRD would not exist if it were not for good Northern Ontario underground mining contraction to coin a phrase. If he does shrinkage and resuing, it may suit a small tonnage operation but costs will be high (+175 a ton with milling = 0.25 OPT breakeven) and he needs 40 to 50 really good contract-grade miners. Where they will come from is anybody's guess. Right now they don't exist freehold. Canada is that badly off. To mine these shallow (sub 38 degree) plunging narrow nose folded veins requires some inventiveness and mixing of methods. Part of the mix can be mined out of raises by specialized suspended cage methods bottom cut out of alimak raises. If they try conventional raising they are in for trouble. Personally I would consider going to raise bore machines. That is what we used at Kerr Addison and it was very safe, and cost effective. It is hard to get a long hole drill in a raise bored raise even a 6 footer, as there is little room. This would require secondary slashing and bolting, which is not too hard fortunately. Probably the best way is to slash the whole raise to 9 - 10 feet with short jackleg holes, rebolt it on the way down, and setup the long hole equipment. EC<:-}