Todays ECU Metal Grades and More
posted on
Jul 09, 2008 03:37PM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
I have computed the metal values for the two veins reported in today's ECU news release. I used current Kitco metal prices as follows: Au = $927.8, Ag = $18.11, Pb = $0.789, Zn = $0.8301, and Cu = $3.7975.
Massive sulfide vein #1
True Width = 4.214m (13.83ft)
Metal content value = $668.96/tonne
Ag Equiv = 36.94 oz/tonne
Mine profitability for 1500 tpd mill, $30/tonne mine and processing costs, 70% metal recovery, and 15% smelter fee = $368.03/tonne = $201,500,000 per year.
Massive sulfide vein #2
True Width = 0.6125m (2.01ft)
Metal content value diluted to 1m excavation = $832.78/tonne
Ag Equiv diluted to 1m excavation = 45.98 oz/tonne
Mine profitability for 1500 tpd mill, $50/tonne mine and processing costs, 70% metal recovery, and 15% smelter fee = $445.50/tonne = $243,913,500 per year.
I talked with Mr. Altmann of ECU today and learned the following:
*The drill core did completely penetrate the 2nd massive sulfide vein. ECU's previous statement that the drill core ended in mineralization is based on the fact that it ended in the alteration zone and has not yet reached the intrusion.
* The issuing of the Convertable Debentures earlier this week was undertaken because both the opportunity presented itself and inorder to finance further deep drilling of the massive sulfides.
*ECU's next drill hole into the sulfides will be shallower then the 900m hole. The reason for this as best I could understand was that the intrusion is on an incline and the next drill hole will be into an area which is closer elevation wise to level 18.
*ECU is very excited about the potential for massive sulfides at the feeder to the A4 vein. The intrusion is at a lesser depth at the A4 vein and thus should be drillable from level 18.
*The reason that the true widths are 35% of core length is that the core holes are not perpendicular to the vein but intersect it at an angle.
*ECU hopes to have a feasibility study completed by the end of this year. This feasibility study will include the engineering for the new mill, currently planned to be 1500 tpd.
*Current cost estimates for the new 1500 tpd mill are $60 to $70 million. This is subject to change since design and estimates are not final. ECU anticapates it will take 2 years after the feasibility study before the new mill is up and running.