Battle of the Titans
in response to
by
posted on
May 20, 2008 06:25PM
Camino Rojo Mexico : In-situ - 4.0 million ounces gold; 68.32 million ounces of silver.
... as everyone here seems to agree, the game is on!
To see Goldcorp and Industrias Penoles get in a bidding war over Camino Rojo is a possibility IMO. As I said earlier, backed by estimates presented here, we ARE in the neighborhood of 5 miilion oz of; at the surface, oxidized, open pitable, close to infrastructure "easy to mine money" in a supportive friendly country. It seems clear IMO that we ARE at the TOP of any list of "Reserve Replacements" for any major with their eyes open.
With this deposit certainly crossing the property boundary into Penoles territory and Goldcorp inversting $1.5 BILLION just 30 miles to the north... if these 2 GIANTS decide to out "macho" each other to be crowned the gold REGENT of Mexico, we are in for a ride!
I think that some GIANT is taking a position quietly now... think about it.... WOULDN'T YOU??!!
One other thing, this will be a low cost mine. Look at the pictures of the backhoe trenches dug by Canplats. You just don't dig rock like that without nature doing some ground preparation for you. Crushing costs will be low and maybe not even neccesary, blasting to quarry the rock may just be enough to prepare it for placement on a leach pad. And as for the resource that resides below the open pit limit, I think that this deposit may be a candidate for "block caving" underground bulk mining methods.
Certainly the cost per ounce for discovery and resource assesment has to be close to a record for the lowest ever! Remember, you can dig dirt with a backhoe, but most rock will just grind the teeth on a backhoe bucket into nubs.
If these things don't make for an easy, attractive morsel for a hungry beast...IMO it might make the 18 foot Great White shark I witnessed dismember a large seal off the SF coast, after a brutal attack, look like a Sunday picnic.
If we struggle a bit to stave off the attack only makes us more attractive IMO. I believe the company is drilling at a break-neck speed, conducting a property wide GP search for other targets in order to maximize the price we ultimately command.
Remember, they are us! They are professionals, not rank promotors, with their money on the line too!