Friday, April 18, 2014 2:16:28 PM
If they need a crusher on the site, then it's not really placer gold they'll be getting. Plus the preliminary gold per ton figure is low--only 4 grams per ton. GYST said they expect only half of that. (Based on what data?--they won't say). Plus, whatever gold is produced...GYST will get only 40 percent. That money will go directly back to Renard/Howarth. The gold production numbers released so far this year can't come close to covering the cost of the new equipment--especially since they operate on a money-losing basis to get that small amount of gold.
In their annual report they stated they may have to sell the Suriname claims as they may not be economically feasible:
The Company received the initial lab results from Suriname. The initial tests indicate approximately 4 grams of gold per ton. However, the Company expects recovery rates to be approximately 50% of the lab results.
The Company is currently financing the operations in Suriname through debt financing being provided by Renard Properties, LLC.
Although the mining operations in Suriname look promising there are a number of risks that the joint venture is facing. These include, but not limited, to: inability to locate a rich gold vein on the properties, insufficient water during the dry season, inability to identify a water source that conforms to environmental plans for the area, cost of trucking pay dirt to a water source for processing, the possibility of not coming to terms with the claim owners, inability to properly fund the project during prospect phase and/or during production, risk of the mining camp could be robbed and risk that the material/gold could be robed during transport. Additionally, the Company’s current cash position is insufficient to cover the expected expenses related to get Suriname’s operations into the next phase. If the Company cannot borrow or raise the necessary capital required then the Company may have to sell a piece of its ownership in the joint venture or shut the operations down in Suriname.
Worst of all is the bit about secrecy for 'security reasons.' this is a HUGE RED FLAG. Any legitimate miner will provide accurate maps of the claims. The fact that GYST won't do that is troubling. So much for transparency! Where's the copper mine? Who knows? What's the name of the mine? Who knows? To be sure, this doesn't concern flippers who are out to make money on GYST regardless of any troublesome facts.
"The initial tests indicate approximately 4 grams of gold per ton. However, the Company expects recovery rates to be approximately 50% of the lab results. The Company expects that its overall gold production, from all of its operating subsidiaries, will begin to significantly increase within the next 2-3 months. The Company expects it will cost approxiamtely $40,000 - $50,000 to begin the bulk prospecting phase. "
This is set up for more failed expectations.
http://globenewswire.com/news-release/2013/11/05/586794/10056250/en/Graystone-Company-Announces-Suriname-Mining-Operations-Are-Ahead-of-Schedule.html
A nation of sheep will beget a government of wolves. — Edward R. Murrow
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