Saturday November 13, 2010
To: Rich Kaiser/Yes International
Subject: Mill production/ day
Mr Kaiser;
Your reply to me of Oct. 27, 2010 indicated that SFMI is now processing 125 ton/day. How soon before the mill will be capable of increasing to 200 tons/day?
It can do 200 tpd now but the optimal efficiency would be lost, so 125 is the optimal efficiency.
Were the assays you have of the Oso pile tailings 2-4 oz. Au equiv./ton taken from just the top of the pile, or from the sides as well? I believe it was a random sample taken at different length and depths.
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My analysis:
It appears we are milling 125 t/day, probably from the Oso tailings.
At 2 oz. Au equivalent/ t x 125 t/d x $1375./ oz. Au = $344,000/d x 30 d = $10.3 mil /month.
My conclusion is that our milling cash flow from concentrate will quickly raise interest in other PM investors. No reason to think these new investors won't buy SFMI when the cash flow totals look this good when announced during Dec.-Feb.
Ed8831477
