Re: SFMI/GHDC - not really about being fooled
posted on
Jan 16, 2013 12:19PM
The ~4-5 g/t is the amount of gold actually contained in the waste ore, NOT the amount of gold they are recovering. The 4-5 g/t is based on the assays, which are performed BEFORE milling and processing. With the present 20% recovery, they are only getting out ~1 g/t. With 70% recovery, that will increase to maybe 3-4 g/t. Still not nearly enough to fund the operation, but at least the mill wouldn't run at a loss. But that $7M in those piles of processed partially depleted ore (NOT "concentrate", they have had 20% of that 4-5 g/t removed) will cost maybe half that much to recover, and will probably take a year if not two. The mill may make a profit with the flotation system, but won't even begin to fund everything until they are working with much higher grade ore. But mining of new ore is off in the distance. That's why they need to drill as soon as possible. Nothing else will have the effect on the sp I'm looking for in the short term.