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Message: 500,000 tons of tailings?

500,000 tons of tailings?

posted on Mar 05, 2010 12:43PM

There are so many “upside” parameters to consider that whatever the numbers going forward, they are likely to surprise to the positive.

Something I forgot was that Rich has told me (last January) that the geologist believed there were at least 500,000 tons of “historic tailings” above ground. So, that improves projections considerably. We also know that 7 g/t was the lowest assayed grade and that that valuation was used as a base for economic projections. If SFMI can double shift the mill then we could see over 200 t/day…and on it goes. What if the grades are 5 times that?

So 500,000 tons of ore enriched mine material above ground could be worth anywhere from 7 g/t up….or a total of 3.5 M gms (117,000 ozs) anywhere up to 2 oz/t. or 1M oz gross. What if there are 500,000 oz gold equivalent? That’s $600 million dollars gross at $1200/oz gold.

These are eye popping prognostications! ….and they are totally separate from the rich resources that await very accessible exposure in the mines and shafts of War Eagle Mountain. The story is most compelling, always has been… and will only grow more so within a very short time.

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