Re: News...of sorts....I just posted on Iblub
in response to
by
posted on
Dec 06, 2010 07:00PM
(Edit this Message from the "Fast Facts" Section)
Interesting article, but not for the reaons one would think (nothing really new). The article is authored "By Rich Kaiser, Silver Falcon Mining". Interesting. Has RK changed affiliation from Yes to being an employee of SFMI?
Also, the article has the following statement:
"In May 2010, SFMI began to process tailings leftover from 5 to 6 prior mill sites on the
mountain."
That is absolutely wrong. It's bad enough that SFMI continually refers to the ore as "tailings", but those are not "mill sites", they are mine sites. There's a big difference. Mill sites would have had some true tailings (though the Idaho Geological Survey report lists only one mill site with significant amounts of "tailings"). What is present at the MINE sites that SFMI is processing is either ore that did not meet the requirement of having visible gold, or ore that was being stockpiled waiting to be checked for visible gold and was not processed before the financial crisis shut down mining in the area. It is not "tailings"- it was hard enough to get ore down to the mills by mule (which is why only the best looking ore was taken), and they sure as hell didn't pack 800,000 tons of partially spent tailings back up to the mines by mule after it was milled. What, you think it was a waste to send an empty mule back up the mountain?
SFMI is in a unique postion in that they are processing true high grade ore, not partially spent tailings like some other companies are doing now that the price of gold is high enough to make it worthwhile. This article would have been much more effective if it had accurately described the material that SFMI is processing.
Still waiting for a PR with enough information in it to calculate yearly revenue- it can be grades and tonnages, or amount of product/dore produced during a time period and silver gold ratios, or whatever. Once we know revenue, we can apply a multiple that would give us a reasonable share price for right now. But so far we simply don't have enough information- which is the overwhelming reason why the share price is so low.