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Microcap & Penny Stocks : IDCN - gold, garnet, etc. -- Ignore unavailable to you. Want to Upgrade?

To: kevin joseph who wrote (5460)	3/11/1999 12:02:00 PM
From: Tom Frederick	Read Replies (1) \| Respond to of 5908

Mr. Joseph. North American averages are about .05 ounces per ton recoverable. With that in mind, a gram is equal to about .035 ounces so two grams is about .07 OPT (ounces per ton). In large volumes of rock, or in areas where it will be very expensive to remove what is called "overburden" which is layers of rock and dirt which do not carry any metal bearing ore and therefore do not produce revenue while being extracted, the key will be if they can have a very low cost method of recovery AND a fair estimate of the total potential size of the property. This is not an example of what I think is in Isaacs Harbour, it's just a way to look at it... If a property has, say, 200,000 potential ounces in reserve based on drilling and assay, that would mean about $50,000,000 at retail in gold, but more like 25% of that at refiner prices or $12,500,000 in revenue. If that amount can pay for the equipement, the people and most of all the time it will take to extract that ore, then it's a go. If it will cost you $13M to get at a $12.5M profit, then you don't proceed. Obviously what you are looking for is high grade per ton, low cost for recovery, and large ore body for a long mine life. If all these hit then you are in business. But if any one is a problem, you have to do the math with a very sharp pencil, and if two things aren't favorable, then there is no point in proceeding. Bottom line, the 2 grams per ton is not a WOW number. But if it proves consistant, it may be enough, assuming low cost recovery and a large enough reserve. Assays are the key. They will be what tells them move ahead to the next step or turn off the lights. Anyone know what happend to the garnet deal with Italy? Where is the revenue from that deal? Back to the shadows! Tom