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Message: Re: New Perspective- Correction
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Mar 05, 2013 05:46PM
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Mar 05, 2013 06:45PM
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Mar 05, 2013 07:31PM

A revenue stream is nice, but it will have to be substantial to really make a difference. Remember, it was costing about $150k/month to run the mill. That means they have to produce 100 or more oz/month for the mill operations to turn a profit. They should be able to do that with the flotation system, but I'd like to see some real numbers, especially throughput numbers. The leach system is still a ways out. Even if they had the money now, the permitting, construction, and trial lag time will still be substantial. And processing the present waste ore will produce at most about 250 oz/month at 50 tpd and 5 g/t. That's not enough to fund everything they need to do. Once they can process higher grade ore (ounces per ton?) then there is no problem. That is why it is so important to get drilling and exploration going to produce the bulk samples that they can process without getting full permits.

Drilling is also essential in order to help raise funds and reduce dilution. Drill results in the range of ounces per ton will raise the share price immediately, make it easier to raise funds, and reduce the number of shares required to raise money.

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Mar 06, 2013 06:53AM

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Mar 06, 2013 02:18PM
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