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Gold/Mining/Energy : MIRANDOR-MIQ ON MONTREAL -- Ignore unavailable to you. Want to Upgrade?

To: jocko who wrote (1748)	3/6/1998 8:02:00 PM
From: Bob Tate	Read Replies (1) \| Respond to of 2635

I have no doubt the reason Kinross went with MIQ is very high possibility of delineating low grade surface deposit that will be economical to develop as open pit operation. This can be Au or combination of base metals like Cu , Zn, Pb and other. If we read all drill results made on Railroad , they are all less than 600 feet. This tells us MIQ is after proving shallow deposit. Based on past data Bunker Hill points to near surface mineralization, good grades, that can be profitable at Au 1.5 to 2.5 g/t providing they find over 1mil oz of Au. Due to economies of scale majors need generally 1 mil oz + to justify their involvement. In copper this figure stands at about min 1 million tons. Instead 20 ton trucks they prefer to use 100-200 ton equipment. High grade Au intersections are only good for publicity and are attention catchers. Most of the time they do not represent large gold deposits and are of little interest to majors unless proven. Largest open pit gold mines in the world work with ore grade about 4 g/t. If you read Great Basin Gold (GBG-V) announcement in Northern Miner it informs that in 1994 Newmont Gold run 33.54 oz gold per ton over 2.4 feet. They unloaded this property to GBG. What Newmont is looking for is 0.1 - 0.5 oz over 200 feet. When MIQ acquired railroad it already had 200,000 oz + (if I'm not mistaken with figure) but not enough for Cyprus Gold to keep it. Majors are better in mining not finding. For years I was chasing property that would be right for major. After forming partnership with right people in Jan 98 we received rights to mine tailings in Uzbekistan including mine waist rock. The same major that number of times declined my offers immediately requested more information and from looks of it is interested. Bellow are quantities and grades of tailings in question. These are rather large tailings produced over many years. Combined TAILINGS over 730 million tons. It is product of Soviet mineral processing plant producing Copper, Gold, Zn, Pb, Molybdenum, Rhenium, Indium, Selenium in Central Asia. Following mineral grades are found in these tailings: copper -0.112 to 0.24% (1.1 million tons of Copper), Gold- 0.214 g/t (4.71 mil oz of Gold ) , Ag-1.06 g/t, Sulfur-1.54%, Fe - 3.8%, SiO2-63.0%, Al2O3-13.0% Additional material on site. Waist rock (bellow cut off grade): Copper oxidised ore 32.6 mil tons Copper-0.4% ( 131,000 tons) Gold-0.54g/t (567,000 oz) Copper sulphide ore 82.9 million tons Copper-0.23% (191,000 tons) Gold-0.45 g/t (1,203,387 oz) Mixed copper ore 19.5 million tons Copper-0.34% ( 67,000 tons) Gold-0.49 g/t ( 308,226 oz) Clinker By-product from Zn processing plant 420 thousand tons Copper-0.16 Gold-0.4 g/t By-product of copper smelter 9.0 mil tons Copper-0.7% (63,000 tons) Gold-0.4 g/t (161,129 oz) Total metal content Copper - 1,552,000 tons, Gold - 6,949,742 oz.