hello box, am unsure where the time went and cannot tally the mischiefs i had engaged w/ in the time, some near fatal but thankfully all not near enough to fatal to be fatal.
following up to this Message 28451553 report, i add a bit more recent and overnight developments
we are continuing to try to front-run the mainland chinese - we are responding to ask-price (the ask-price is at 47% of the cost of their drilling to date) by aussie locals for 4 (one contiguous to our own mining license where the ore body is actually the same one) exploration licenses where the locals already done considerable and not exactly cheap drilling and indicating 4x the shallow oxide gold that allows our payback, and all the claims are w/i 100km the gate-keeping mill.
the ask-price is 0.57% of the mineable gold valued at 1750 per oz. our bid is at 0.36% of same gold :0)
we have countered w/ a further cash discount, or less discount if we can pay a bit now and a bit when start mining, or same bit but w/ some royalty.
in all cases the cash cost of making bars would be under aud 500-600.
so far gold mining seems to be more about strategy and choreography of replenishing and digging for cash most efficiently, than about marketing of potentially unwanted commodity minerals. the gaming reminds me much of hasbro's "monopoly".
wonder when our neighbor the chinese will offer up their claims for joint exploitation or simply offer to buy our gate-keeping citadel mill along w/ all jorc-compliant reserve claims, or even better, abandon their claim as uneconomic and let us have it for next to nothing.
must remind self to consider instigating natives to rise against the new sovereign ;0)
taking gold from noobs by teeing up other noobs - not so much a game but a supreme art form :0) and all the while doing god's work that is socially relevant and historically appropriate.
From: J
Sent: Sunday, October 7, 2012 2:53 PM
Subject: Re: Gold chronicle
hi g, just back home after weekend w/ kids and extended at disney world for erita's birthday wish.
it has been 8 years plus 9 months since i responded to my call of duty on bora bora.
before gold talk, i refer all to the news re self-determination - political liberty and economic freedom - that 70% of venetians wish for independence from rome rt.com - looks the the decline & fall of rome is finally accelerating into the epilogue end-game and to the footnotes.
re gold chronicle and what the chinese companies would be doing w/ their gold claims in our neighborhood, i report that the chinese companies would most likely be doing nothing given the peculiarities of gold, and the special situation of mining for gold, particularly in our town, unless the chinese cooperate with the jacko mining boyz, or so we figure.
(i) we know the area has the single ready-built, licensed, and working-order mill with the oxide circuit. we know because we own the pile of metal structures.
(ii) fyi, oxide gold ore are the sort closer to the surface, say from 0 down to 30 / 40 meters
(iii) historically oxide ore be the material mined and processed, down to whatever appropriate cut-off grade depending on digging / trucking / milling cost vs gold pricing
finding gold on the goldfields adjoining the gold coast is not terribly difficult
finding gold of the proper grade is also relatively easy as the price of gold charges ahead of the cost of same gold.
finding gold in volume needed for extraction and milling is harder, but easier if one happens to own the only mill centered inside a huge geographic circle.
the only thing that would make the aussie gold game easier if 'X' marks the spots where one is supposed to dig for the oxide then drill for the sulfide.
luckily such Xs' are marked by earlier pioneers who produced gold from shallow pits.
(iv) the higher grades had been extracted over the past 100 years, and the earlier boyz had left over mostly the <10 grams / ton of dirt material, and had overlooked splotches of >23g/ton goodies. a function of laziness, drinking too much, then state-of-technology, and individual fortunes
(v) what was not worthwhile for extraction and processing over the past 100 years are no longer so as gold in current fiat money pricing relative to extraction cost in same, less the negative-hassle of not having to look for the gold given the wonderful public record-keeping system in place on the penal colony that is australia.
the late comers, including the chinese, do not have to guess where the gold is but know where the gold is, just not precisely how much gold.
(vi) what is worthwhile extracting today, especially when one knows precisely where to dig and having not to go beyond 30 meters depth while extracting the goodies all along the depth, is really only worth digging if and only if one has the wherewithal to process the ore, depending the grade, w/i a 350-450 km radius of where the material was dug up
(vii) should the chinese find an especially wealthy vein of oxide gold, they would be happy but not happiest, because such gold is the appetizer they cannot partake unless they work w/ the new lords of domain, three boyz who have taken possession of the only mill w/i 750 km of where they are
(viii) lucky for the chinese that one of the three boyz be a friendly french creole hakka chinese front-runner who is willing to work out a deal
(ix) however, for now the chinese are not especially looking for oxide ore that their forebears must have also worked given the place names in the neighborhood ("chinaman's creek" etc). they have instructed their aussie subcontractors to drill but drill way deep, to 200 m depth.
i spoke to the chinese at their camp, and my aussie associates bought beer at the pub for the aussie drillers working for the chinese. the chinese have and are going deep, methodically, packing the drilled material in lots and lots of bags and shipping the bags somewhere for testing. if one did not know better one would guess that the chinese found the continuation of the surface oxide low-hanging fruit in the form of sulfide gold
(x) it just so happens that our approved sulphide circuit shall be operational by august 2013, a coincidence i am sure, and
should it be the case that the chinese found the long-guessed sulfide lode, then
(xi) they would need to calculate
(xi-a) cost of shipping raw ore to distance beyond 750 km
(xi-b) cost of working out a reasonable share-and-share deal with the referenced front-running group
(xi-c) given that the chinese group is a large mining group, they need also to figure out the cost of engaging with neighboring claims that were just wrapped up by the same friendly front-running group just last night (a hand-shake deal to be papered in the coming week)
should the chinese group fail to find the mother lode but just a small mineable reserve, they would need to work out whether they should abandon the effort and hand over the goodies to a group who might appreciate the small lode
(xii) what i know at the moment is that the oxide-circuit mill generally
- takes in ore (a/k/a rocks), smashes to almost powder, adds dash of cyanide (the stuff that breaks up under the hot sun to become harmless), plops of carbon (coconut husks), and fire
- miraculously out comes dore nuggets comprised mostly of gold (92-98%) and some silver (8-2%)
- the pieces of dore are shipped to the perth mint once per day or week or month where that entity refines the material to 9999 bars as a paid-for service (all part of the aud 500-600 cash cost of each ounce)
- the bars, now stamped with the perth mint stamp of purity, are kept at the mint awaiting their call of duty - the owner of the material instructs the perth mint as and when the owner wishes to sell the bars kept at the mint based on the indicated global trading price
(xiii) should the chinese wisely choose to work with the boyz ("_____ mining" standing for jacko mining), then whatever material they send to the mill would be shipped to the perth mint, and once purified to 9999 would be split 50/50 w/ jacko group
iow the gold would not necessarily be leaving australia at all as the chinese can sell their share to perth mint and pick up equivalent ounces on the hong kong gold and silver exchange, thus saving themselves of the shipping hassles.
gold mining seems considerably easier than other sorts of mining where one has to be concerned about the infrastructure of moving large volumes of stuff around, from where they are dug up and processed to where they are actually needed, at the specs needed, and if late, mattering to industry and commerce.
as gold is universal cash, and universal cash is cash everywhere, and so where any particular batch ends up is not so important as long as one can get an exact equal batch where one needs it.
by the jacko venture i mean to learn all there is to learn about gold mining, to fill out my knowledge of trading paper gold, cloud-atm gold options, and collecting physical gold. at some juncture i will be wanting to learn about the formation of gold at the center of super nova stars as such quivers before phase-changing the dwarfs and black holes and all such.
first i will learn by doing, about working with the mining agents of the new sovereign in the deep outbacks but from the airconditioned comfort of hong kong.
i have so far learned that the irish girlz in 'big' city cairns are, on average, prettier than the ones in the outbacks, and in cairns there are cute japanese girlz working in the more genuine of the japanese restaurants.
cheers, j
From: G
Sent: Saturday, October 6, 2012 2:24 PM
Subject: Re: Gold chronicle
J
Any idea do the chinese gold co's sell the gold to chinese central bank at market or a fixed price?
Have been thinking that china doing a nice trick of exchanging rmb paper for gold. Slowly building up its hoard.
This is their goal for more then just gold.
Must be wonderful when a country can enter the exclusive club that can print paper and exchange for real things on global basis (not just domestic production).
Best regards
G |
