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: loantech who wrote (55566)	1/19/2008 12:55:53 PM
From: Mr. Aloha	Read Replies (1) \| Respond to of 78409

<< Seems like assays would be available by now no matter what the delay on those earlier "longhole drill" holes? >> I think they were accumulating earlier results to incorporate into the old database from the 1999 silver drilling, from which they will soon release initial block model estimates (from the area west of the San Salvador mine). They may be awaiting a few more results before finalizing those initial estimates. As for the earlier longhole samples from drilling 10-20m out from old mine workings, it looks like they did get those results back before that NR, and based on the "encouraging silver values... several new exploration targets were defined for future drill testing." Samples from that drill testing from August onward were sent out from October on, but they expected at least 8-10 weeks before receiving results. It's now been around 12 weeks, so I would expect they should be getting results back from the lab by around now. However, I don't expect them to release each individual drill result, but rather summarize the results periodically. Since they've ramped up their drill program so much, they should have much more frequent updates of their exploration than in the past. My understanding is there are 3 different parts of their current silver exploration drilling -- first, the area that has been pretty well drilled up already, for which they'll soon have initial block model estimates, second, longhole drilling to identify new exploration drill targets within the historic silver district (and maybe outside the district, too), and third, drilling to prove up the exploration targets that were identified by that longhole drilling. I think the material news from the first part will be the block model estimates, the news from the second part will be where the new drill targets are, and the news from the third part will be the drill assay result summaries. << These are very economic wide widths IMO. Do each of you concur? >> I agree that those widths are very economic, especially given their relatively shallow depth and proximity to the San Salvador shaft, as well as all the infrastructure they have there. << Did I read that right that it takes 6 weeks to get samples to the lab? Long time even by van, truck, rail or Uhaul? >> I have no idea why it takes 6 weeks for the samples to get to the lab. Maybe they get held up at the border(s) longer because of homeland security? I could see border agents wanting to examine a bunch of core samples very closely to ensure there are no drugs or explosive content in them. I just took a few rock samples with me through the airport coming back from a mine site visit and the agents asked me a bunch of questions and examined them closely -- I guess they look suspicious in this day and age. << Can they just get in house results rechecked and speed up the assay reports? >> I don't think they can do that and still have the assay reports qualify as independent analysis. << As the mine plan may be part of the feasibility and may not be released independent of the feasibility study are we anticipating any news other than assays or the block model and any new news on the block model? Am I correct in that the mine plan will not be released independent of the feasibility study? >> I don't think the full zinc mine plan will be released independent of the feasibility study, but I think key information from the mine plan will be. Other than silver drill results and initial block model estimates, I do anticipate an update soon with key information from the zinc mine plan. Also, the annual report 10K should be out around the end of the month. In their drilling, they've taken the approach that the bigger miners take in not announcing each drill assay result but rather accumulating them and summarizing them periodically instead. That can be frustrating for traders trying to time the releases, but they'll release the summarized results they consider to be "material information" and thereby signficantly increase the value of the company.

To: loantech who wrote (55566)	1/19/2008 4:02:24 PM
From: jackjc	Read Replies (3) \| Respond to of 78409

As Aloha has responded completely to those questions, I can only add: The new assay lab is to direct the drilling operation without waiting weeks for the official assays, will save time and increase thruput. But these are not independent assays for official release. MMG is one of very few jrs with 4 drills running 2 shifts continuously and with immediate assay info. Cost could be prohibitive and availability uncertain without our own drills, crews, and assay lab. Silver data: The emphasis is on getting the huge database of existing data into the Gemcon software, a time consuming operation which has been 2nd priority to the fease needs. Recently they have added another computer pro to speed this up as reported. To get credit for the silver we need at least 'tons and silver oz/T' type reporting. I personally like to see individual drill results but good holes fade quickly in perception and we need something more substantial. Fease: The Confidentiality Agreements with the independent firms give them full control over what is released. The impression I get is that some fease data could be released before full fease completion. We would need to see some resource, mine rate, and costs to get an appreciation of the profitability performance we have been hoping for. Tom, looks like you are jumping back in for a quick trade based on silver data and want to buy in just before release so as not to waste time, and sell the news. Lotta luck on that. IMO the project is on track, many milestones completed, now at the point where the pieces are coming together. I think this 1st Q will show that, though only parts of this large property have even been sampled thus far. The world economic situation may be precarious right now, recession for some may loom, but the timing and need for a large high grade Zn and silver resource to be brought to market seems right to me. And I expect financing to be available OK for the highest profitability projects.