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

To: E. Charters who wrote (55581)	1/20/2008 1:58:37 AM
From: marcos	Read Replies (1) \| Respond to of 78409

With the oxide you don't use a smelter as it doesn't smell, you use a refinery to be more refined ... capex has been estimated at 400m but that was a while ago so who knows ... refinery location is wide open, depends on tax situation and power costs, and i have wondered if they've considered building in capacity to take other oxide ores [znc.to, lth.v both have oxide] ... Sierra Mojada has a number of advantages over Skorpion, being bigger, having far more infrastructure in place, enjoying a far better zinc market, and not being in Africa are the top four off the top of my head Skorpion still doing well - Message 24061818 Silver numbers, yeah, what a concept ... there used to be numbers - ' Samples from the Polymetallic Manto have contained an average of 300 grams silver per metric ton (10 ounces silver per metric ton), 0.6% copper, 5.5% zinc and 2.2% lead. The silver grades have ranged from approximately 10 grams to 50 kilograms (31 ounces per kilogram). One drill hole intersected mineralization with grades averaging 11 kilograms over a thickness of 9 meters (3.28 feet per meter) and copper grades measure as high as 4%, which indicates that the Polymetallic Manto contains very high grade silver, copper mineralization. Work on this mineralization was put on standby in 1999 when the Company recognized the potential of the oxide zinc mineralization as a result of a positive feasibility study conducted for the Skorpion Mine located in Namibia, Africa, that demonstrated that the use of the solvent extraction electro-winning ("SXEW") process could make it profitable to mine oxide zinc deposits that would otherwise be unfeasible...' sec.edgar-online.com

To: E. Charters who wrote (55581)	1/20/2008 2:46:24 AM
From: jackjc	Read Replies (1) \| Respond to of 78409

Your notions of meagre profits with $100 Ag ore are way off. BCM has $40 ore, about $20 of it silver and open pit. The stock is 8.00, not based on expectations of small profits. Also MMG using SXEW with infrastructure far far above what Scorpion had, would have low mining costs. With all costs escalating perhaps not as low as Scorpion despite the other advantages, we simply don't know yet, mine plan being worked now. Smelters will not take half or more of the profit off the top as at the other Zn mines. In this environment it is the top Quartile projects that are likely to be advanced while the others are put on hold. This benefits them and the future likely reduced supply of metal as some large Zn producers run out near term.