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

To: Earlie who wrote (67971)	11/11/2009 2:10:49 PM
From: E. Charters	Read Replies (1) \| Respond to of 78404

I know a big bag of rich people, but not one of them does mining, or near none. And most of them won't do nascent or pre nascent companies. There are situations which are really only high risk if you cannot raise the money. There are lots of mines which could be restarted. Grass roots drilling of course, which they were throwing money at like water a couple of years ago, is a pure crap shoot. Looks good if the story is smarmy, but the chances are low, low, low, unless you are stone cold geological genius. Like me. Most of the brokers have a prejudice. When Hemlo came out, everybody wanted a "gold zone". They wouldn't know a gold zone from a sharply cut off quartz vein if it bit them on the hind end. And they ain't mining engineers so they would not know what would or would not work. Often very sharp cut off wall, ultra hard rock QV's are in fact sweet, as it takes very little engineering to mine them, and there is zero dilution. I know one like that where the gold was only 0.25 oz per ton. Zackly 6 feet wide. Maybe 2000 feet long, and like most Archean gold went to hell and back. Now I know everybody would sneeze at it, but it would be easy to make money. Maybe $60.00 per ton mining cost, 0.0 dilution, practically no explo drilling or geology necessary, just drill the stop shrinkage, blast and slush, and pull. Gold was coarse and 80% came out in the jig at 160 mesh grind. 500 tons per day and today the ore would be 68% profit. Not huge, but with shaft in to 700 feet and four levels, the cost to develop would be low. Max capital would be 20 million. Make 31 million per year before taxes. Anytime you make what you put in after taxes every year, it's good. How many brokers would back that? 0.0 minus a 1000. There are perhaps 70 gold mines in Canada that could be restarted. With 1100 dollar gold and some good people, they might work. Don't hold your breath. I know a few half ounce per ton thingies in Nevada that could work too. Don't hold your breath on those either. They are actually ultra low risk in fact. Mining licenses exist in some cases. Beat that. Can't do it with a club. But people think its hooey. I would like to see them start a donut shop that made 20 million dollars a year. I find its only the sane, well figured out, not glamorous but money making ideas that get no respect. Gold mining is actually a very predictable business, but it is the Rodney Dangerfield of business ideas. Everybody has the spectre of quivering danger, and day to day uncertainty of bucks etc and nothing could be further from the truth. Having said that, three people I know have died in gold mining! That is over 30 years of course. Rock did not hit them. They fell down raises or chutes. Assholes. In one case the guy's safety rope broke. On the other hand I worked in mines and never came close to an accident. Ok, one time the staging broke when some loose hit it and we fell 6 feet. I was drilling on the brow out of a raise, and I knocked off a 100 lb piece of loose. It fell 3 feet and hit the boards, double 3 X 10 plank. Naturally they had dry rot, so down we went. As far as uncertainty of pay/profit in underground mining, I worked in one stope at Kerr Addison which had 10,000 tons of flow ore. It had been diamond drilled to predict 1000 ounces. We mined it and the mill return was 995 ounces. Sounds like a ~shakey~ situation to me. EC:<-}