Re: New Perspective- Correction
in response to
by
posted on
Mar 06, 2013 10:33AM
(Edit this Message from the "Fast Facts" Section)
I think you underestimate the impact of drill results. Don't extrapolate from what good results did or did not do for another company to what it would do for SFMI. Lots of companies find hot spots, but getting from there to showing it is more than a spot is a lot of work- and a lot more drilling and money. And getting from there to production may be years. But if SFMI can produce results in the Sinker comparable to the historical results for those same veins 2000 feet up, then the implications are enormous. That would show that the veins don't peter out, but are as extensive and strong as previous results have indicated. Veins that can be traced for miles on the surface, that have historically produced over 2.5 oz/t, and that can be shown to still be that rich 2000 feet down? The majors know exactly what that means.
And another point many forget- If the Sinker ore is anywhere near historic grades, then even a small operation can be enormously profitable. 1000 tons at 2.5 oz/t is 2500 oz, or over $3.5M. And they can process that much in a month. They need to get the Sinker operations going. Even if the flotation system product requires a longer time to smelt than the more concentrated leach system product, 2.5 oz/t doesn't require a lot of ore to be processed to fund the operation. Just the allowable bulk sample could be enough to fund them to actual mining, rather than just "exploratory" mining.