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

To: jackjc who wrote (55575)	1/19/2008 4:14:06 PM
From: LoneClone	Read Replies (1) \| Respond to of 78409

Maybe we should start picketing the MMG corporate offices until they give us an update. <vbg> LC

To: jackjc who wrote (55575)	1/19/2008 4:31:16 PM
From: loantech	Read Replies (1) \| Respond to of 78409

Thanks jack. <but good holes fade quickly in perception > Yes but maybe not in the case of BCM for instance. This market is spooky and a dearth of news can cause a stock to go down. Steady reporting of decent assays will help in this market IMO. <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.>> That is true jack as I am not going to wait out 9 more months for the feas in this type of market with base metals stocks potentially losing some favor. MMG has great value that at some point may richly reward those that wait. But NG had a shock and shocks may be more of the flavor of the day than upside surprises for now. <I think this 1st Q will show that, though only parts of this large property have even been sampled thus far.>> If we get the news on somewhat steady basis that shows this then MMG will not only have strong floor under it but will advance steadily. <And I expect financing to be available OK for the highest profitability projects.> That makes good sense but in the past few years bankers have shown little good sense. jack I think MMG will be a great project but until more is known it may be range bound. I like it but for me right now it is a trade. Some good silver assays or the silver block model could make it a "blockbuster" of a hold.

To: jackjc who wrote (55575)	1/19/2008 9:02:46 PM
From: E. Charters	Read Replies (2) \| Respond to of 78409

Since most zinc mines were not profitable at 60 cent zinc prices, it stands to reason that a projected zinc price of $0.85 should make 25 cent cash operating profit per lb. for a producer. In MMG's case this amounts to 1.22 billion overall in the two manto deposits. That would be 81 million dollars profit per year for 15 years. Or 40.5 million dollars after taxes. This would be from a 4000 ton per day mill. Cost to build that in general could be about 35 million. Cost for the mining equipment would be about 15 million. Cost for the water reclamation and tailings pond would be about 20 million. Payback on that at zero profit would be 11 months. Thereafter the profit margin should be as above. With 70 million shares out, given strict financing from equity, this would mean fair price of 7.5 times earnings per shares of 57 cents, or 4.28 per share. This is highly dependent on total smelter and extraction costs being about 60 cents a lb. This is conjectural. It may be bad news if this level cannot be met vis a vis zinc alone. Skorpion costs are about 25 cents cash, with a slightly differing product. Total costs with smelter, and capex I am not sure on. The flotation solvent extraction process that Skorpion pioneered should make the cost equation somewhat different. Now silver would add to this equation, but I cannot see where the grades of the silver areas, tonnages or the extraction methods are indicated. Silver I take it, would mean mining and concentrating a whole different ore body, and extra milling capacity. The total metal value is less, but at 100 plus dollars open pit silver, there appears to be a possibility of a profit. Flotation of silver worked well at Cobalt, Ontario, reducing costs in the modern extraction era post 1970. The silver equation at Cobalt in mines that produced underground at between 30 to 60 ounces per ton was obviated by union labour demands, and work to rule. One by one the mines closed because development miners could not cross union lines, and UMW workers wanted way too much per foot to develop themselves, without the time saving skills of the contractors. The same spectre of lack of ability to mine and develop at reasonable costs faced Dome, and faces Campbell Chib, and Falco in Timmins. The whole picture at MMG needs the silver equation to be comfortable as has been pointed out, but it needs some kind of number pic to add sizzle to the stock. EC<:-}