Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: tyc:> who wrote (53755)	12/4/2007 10:46:52 PM
From: loantech	Read Replies (1) \| Respond to of 78434

2007-12-03 T : WDO 1.28 1.32 0.77 1.18 -0.13 Wow .77 what a joke this is a 2-3 buck stock but only I belive that.

To: tyc:> who wrote (53755)	12/4/2007 10:55:37 PM
From: E. Charters	Respond to of 78434

It isa new type or or. Gravdriv -or- Drivgrav You can't mine either type, but you can run them in a stock. Tragically when you do these feasibilities they takea long time to run on computer simulations that use both stochastics and linear programming. They are huge programs with thousands of inputs sliding up and down projected metal prices interest rates and mining methods. Usually about five different types of methods are competed these huge scenarios. Pit walls, grades, etc.. The differing mini-scenarios of the say ten major themes or trial runs can number in the millions. The best one wins, but the best one may not be good enough. What defeats most feasibilities is 1. they are not done at sufficiently high metal prices. 2. The also assume from Dupont IRR that the money is reinvested at the same rate it is earned in the mine. That is wrong. 3. And they assume no learning curve. That is also very wrong. 4. And they assume far too high interest rates. They are overly conservative. 5. They also (trial) mine too large at too low a grade. That is wrong. Five wrongs never make a right. The pit MUST be at the dollar depth of the metal prices to come. Not at a dollar depth of the most conservative metal price. It is shallowest at that price. What they do is zero out the pit based on the cost curves increasining with depth and compare that to the profit based on X metal price and Y interest rate. This method called zero line increases depth until marginal cost of the next foot depth equals marginal return. But what is that marginal return, based on metal price, set at? If they assume that they cannot assume 800 dollar gold and 3.50 copper, they may not mine it. Is this fair? Do you know a way to figure what the price of copper will be exactly ten years out? I do. I am fairly sure they don't. If they want to hire an economist who can tell them that definitively then I want ten million dollars. I could halve the cost with different mining and milling costs. And I could increase the metal price by 50%. That would make it economic. I won't argue with how I could. I just snap my fingers and say, half cost, and 1.5 the price and build to that paradigm. It works. If metal prices fall, you don't make money for those years. But down the road as they rise again you do. The depth is the same as the lower grade, as you plan for higher price. It is majik. You need to stop building bigger and bigger mills. My bet is smaller mills are more efficient. Much cheaper to build. And use local detritus to grind instead of metal. Cornish rolls in front. After Hazamag. Blast fine to save grinding cost. The ore grinds itself. When you float the ore, you pelletize it, roast it and leach it outdoors. Heap leach. This way there is no pulp as you take all the water out after leaching. and don't use a tailings pond. Save 2 billion on operating tailings pond, pumping and making one. You take the copper pellets from the flotation and you roast them generating heat for a co-gen process reducing power consumption as it is an exothermic process. You take the sulfuric acid from the gases by catalytic conversion, and use that to leach the copper which is now oxide so no leaching problem. Leach gold with potassium bromide after floating. Leaching circuit is only 1500 tpd. Cheap. Recovery 75-80%. Cost. 1.5 billion and you can mine lower grade even. Pit depth the same as if you had 1000 dollar gold and 4 dollar copper. Profit 30%. Wanna bet it would not work? But to do it you have to cut thru the bs. PS I know the people who planned the Red Dog. They would listen to me, so I figure if it is blarney, it is educated blarney at least. EC<:-}