Re: Silver Standard Resources: Head and Shoulders Above the Competition
posted on
Sep 28, 2010 01:16AM
SSO on the TSX, SSRI on the NASDAQ
I appreciate that the South American projects are quite a bit further along than Brucejack however a low tonnage high grade operation with a significant portion of direct shipping ore would not necessarily have a 7-10 year time line. I have faith in the Silver Standard management to evaluate all of the available options and when you are looking for one thing-(a large tonnage low grade operation) and find a substantial low tonnage -extremely high grade deposit it changes the priorities. High grade intersections when they occur once can be considered nuggets but repeated intersections over a 130 meter by 400 meter area are unlikely to be the raisins in the bread. It takes a lot of holes for a geologist to ascribe tons and ounces to this type of occurrence however if you review the West Zone feasability and the 40 million dollars of existing underground development located 500 meters from the Galena hill zone where the high grade intersections are used at uncut values due to the consistency of the vein structures it would be in the companies interest to weigh all of the options. Even if Silver Standard did elect to monetize Snowfield in some structure that connected the Seabridge (KSM Mitchell) with Snowfield, it may be that Brucejack can stand alone- initially with a low tonnage -high grade operation that would be self financing for the development of the high tonnage low grade operation at some time in the future. As was stated in the headline for this thread there is virtually no value currently given by the market to the Canadian properties of Silver Standard and I fail to see why anyone would not want to have another Eskay Creek. where about 50% of the mined ore was shipped directly to the smelter- ie no mill- no tailings disposal.