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

To: marcos who wrote (16330)	3/21/1999 8:26:00 PM
From: jack hampton	Read Replies (4) \| Respond to of 26850

Firstly, I have not looked at the property in detail but can offer the following mining advice..... If the ore value is high (say greater than $200/tonne) you don't want to leave any behind. So the mining method would likely be drift and fill. This is one of the most expensive methods. Cost per tonne way up in that neck of the woods would likely be in the order of $C80/tonne to the portal. If the rock strength is too low, drift and fill is necessary also, especially with a lake above you. It is my understanding that the kimberlites underground at the other properties is rotten. Don't have a clue about dykes though. If the rock strength is good, (say +80 MPa), then apparent dip room and pillar using drill jumbos is good. Costs I imagine would be around half that of drift and fill up there. For comparison, room and pillar mining costs in the Australian outback runs about $20/tonne in good ground. So double it up north (heating, no road access etc.). Could do a mixture, first pass of room and pillar to pay off the place, then fill the holes and drift and fill the pillars left behind. So much depends on the rock strength here!! Newcrest had an operation in Western Australia (Telfer) of similar geometry that was an absolute nightmare due to low rock strength. McArthur River, Cadjebut etc. have it easy because the rock strength is good. Having mined for 20 years, this is one of the key things I would find out if I was an investor (which I am not). Much of the cost structure up there is also tied to haulage costs to site, diesel power costs etc. One thing is for sure, they are not going to do anything by themselves. $C500M required I imagine.