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

To: Claude Cormier who wrote (54687)	12/28/2007 10:08:56 PM
From: loantech	Read Replies (3) \| Respond to of 78421

Thanks Claude. MFL also has a new resource due that could really increase the metal they hold as the old resource was calculated at 450 POG and 7.50 AG. Looks like WGI could double but MFL could do a 2.5 bagger. That has my attention. Of course either WGI or MFL could have some snags like Gammon had. Here are some rough numbers and musings regarding USA. It is ready to roll IMO: Thinking USA about to move in 2008. New resource by mid Feb. Silver production costs to fall with the lead sales. <The lead-silver ore will be run through the Coeur mill at an initial rate of 100 to 200 tonnes per day increasing to 400 tonnes per day by early 2008. The initial rock processed in the Coeur mill will be lower-grade development ore, with ore grades improving to a range of seven to nine ounces of silver per ton and 9 to 11 per cent lead as the developments are completed and full production activities commence. > stockwatch.com As per conversations with USA they want to pump out about 3-4+ million ounces of silver in 2008. <With both mills operating, production levels from U.S. Silver operations are expected to be as much as 900 tonnes per day of combined production by the end of 2007. > <The headgrades averaged 14.42 ounces per ton up from 12.7 ounces per ton during the third quarter 2006. The company expects the headgrade to continue to improve through 2007 and 2008 as newer and more-efficient stopes are accessed> stockwatch.com Estimate 800 tons per day an average of 11.5 ounces per ton = 3.3 mill ounces of AG production in 2008. <the company was able to capitalize on historically high lead prices and sold forward approximately six million pounds of lead at prices above $1.50 (U.S.) per pound for 2008. This represents approximately 50 per cent of the expected lead production in 2008> 400 t/ d at 10% lead = 31,000,000 lbs of lead estimated. With the hedge on half etc this brings in $30-40 MIll $$ in lead by product revenue reducing costs on the 3.3 mill ounces AG produced by about 10 bucks per ounce in rough numbers. <The company produced 265,547 ounces of silver during the third quarter of 2007 at an average cash cost of $12.62 (U.S.) per ounce> I spoke with an analyst providing coverage on USA today. His conservative estimate forecasts AG costs could be down to $1.70 per ounce with the by product sales by the end of the 1st or 2nd quarter.Jives with conversations with USA management. If gold averages 850 for 2008 and we can reach a 50:1 ratio silver may approach 17 bucks. Leaves a potential of 12-15 bucks per ounce net out. Say 12 buck times 3.3 million ounces = 39 mill in profit. After the recent financing they will have about 233,500,000 FD. 16 cents per share profit. HL is making about 49 cents per share. They sell at at 19 multiple. Puts USA at 3 bucks a share. All rough numbers but who knows?? USA is a long term hold for me at this point. Could move a lot of inferred and M&I AG into P&P in the resource due FEB 2008. USA has had a lot of exploration success. Silver could pop to 20. Lead and copper sales could bring AG costs close to zero. All points to a lot of potential. Couer, Galena, Day, and Caladay infrastructure would cost millions. Could USA be a take over target once operations are streamlined?