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Gold/Mining/Energy : Abacus Minerals Corporation (V.AMC) -- Ignore unavailable to you. Want to Upgrade?

To: knight who wrote (227)	8/7/1998 12:34:00 AM
From: Elizabeth Andrews	Respond to of 397

No, not necessarily but the lack of continuity possibly caused by faulting means that extensive development work may be necessary to mine the deposit which makes it potentially much more expensive. Lack of continuity for whatever reason increases costs and in some cases that can make a deposit uneconomic. Grade can overcome this but the grade has to be exceptional. The early work on the property was done by Teck, I think, or an affiliate and I believe that their holes indicted a complex structural setting. Thus they decided to let a junior company earn in on the property because it was too risky for them. It's a standard story. The rational for the juniors is that the major drilled the wrong way or the they didn't understand the geology or some other thing the major didn't understand. But the majors actually have the producing mines and that didn't happen because they were stupid. Most deposits are found where there is a mineralised showing and most mineralised showings are found by major companies doing recon work of some sort. The fluke deposits found by juniors usually occur in environments where the conventional wisdom suggests that major deposits can't occur. Dia Met and Diamond Fields are good Canadian examples, but they are by far the minority of discoveries. I'm not knocking it but I don't think you should over rate it either. Let the facts drive the opinion. This property has a long history which I'm sure the company would love to share with us.