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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: gg cox who wrote (6151)	6/22/1998 5:34:00 PM
From: ddl	Respond to of 26850

Hi Peter, I'm new to this thread and your post is very interesting. I also have been doing a bit of math on this play and it finally struck me that the sample sizes from this dike are very small (average 10 - 50 pounds per drill hole). So I asked myself, is this sampling of only the dike itself, as it must be? If so, the grade is then very high because they are reporting only on the "cream". It would be nice to be able to extract just the cream, all 3MM tons of it, but in reality, what can they expect to have to extract in total tonnage to get 3 tons of cream? Eric mentioned a strip rate of 14/1 if I remember correctly, I don't know, but if it is 14/1, then the actual value of this find must be liquidated by a factor of 14. I would hope not for everyone's sake, but I imagine this should be an important factor. Can anyone help decipher this? Good luck to all as I hope to jump in when I get a clearer picture. - denis

To: gg cox who wrote (6151)	6/22/1998 7:13:00 PM
From: E. Charters	Read Replies (1) \| Respond to of 26850

Trouble is base capital cost and infrastructure versus applicable mining rate. It is possible to mine flat veins by a a variety of methods. It may be possible to strip 20 times the veins' thickness off the top. But it all has to pay a minimum mill. Hell I would try it with a basic 5 million dollar panning plant. But every time I hear the mine plans up there I get bigger figures than eleven. Beats me. But I think the vein geometry will give them a negative return., What I would do is flat panel stope it laterally and from ring drill galleries above the sill. Slush laterally off the top into a scram drift and load it onto a conveyor to surface. Costs would be about $25 a ton which is acceptible to this kind of material. Rate would be 7500 tons a week with 3 scrams running. A Panning-float sortex plant would cost about 25 million to put in place. Underground would be about 15 million. Costs per Carat all up might be anywhere from 20 to 60 bucks depending on grade. echarter@vianet.on.ca The Canadian Mining Newsletter