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Gold/Mining/Energy : Sun River Mining (SUNR) -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus who wrote (346)	1/29/1999 12:56:00 PM
From: Jim Bishop	Read Replies (1) \| Respond to of 1650

From RB: -------------- By: mymac Reply To #635 by RPattison Friday, 29 Jan 1999 at 12:49 PM EST Post # of 636 for "Barginstocker" on SI: this is what you would be speculating on... From the Challana Assessment Report: (a little background...) "The Challana concession encompasses 1,000 hectares (2,470 acres)(it lies within the Tipuani mining District). Historically, underground mines in the Tipuani District have encountered extremely high grade gold ores on the veneros encountered just above the old valley floor, resting on bedrock. In addition to the high concentrations of gold in the veneros / paystreaks, somewhat lower values are present throughout the Cangalli Formation." (estimated production - this was during the coarse of approximately one year...) "Gold production at Challana since September 1997 is reported to be on the order of 50 kilograms (1,560 troy ounces). According to Giovanni Viscarra, the largest amount of gold recovered in a 24-hour period (three shifts) was 550 grams (17 troy ounces) in September 1998." if production cost estimates are correct (150/oz - 180/oz), at current price of gold, the company would profit a minimum of $100/oz...this means that using rudimentary techniques this single addit netted 1560oz x 100/oz = $156000 in one year. at $125/oz = $195000. and that's with an estimated 40% recovery. if reconvery were on the order of 80% (conservative, Hazen estimated 90% could be achieved) they would have produced approximately 100Kgs = 3100ozs = $300k to $390k...using no mechanized recovery processes. "Recent exploration work suggests that Challana could be developed as a small tonnage, low cost, high-grade underground gold mine. Properly developed and managed, the project could be extremely profitable, even at a long term gold price of US$300 per ounce." hope this helps...toma