I got a message from Miguel Jaramillo in early September of 2013 concerning the Tailings Project. I believe I posted it at the time. To summarize, Jaramillo said there were 1.5 million tons of tailings, but that none had been delivered to a processing plant because "... they do not pay the right price."
I got another communication in December of 2013 which said there was a second processing plant, but that it would have charged more than the tailings were worth to process them.
I was able to get a local newspaper reporter to verify that there were no tailings belonging to LSTG, Amiko Kay or to Jaramillo in the Government processing plant in Parral, and that no contracts between Jaramillo, Amiko Kay or LSTG and the plant existed. The reporter got his information in an interview with the plant manager.
I think the tailings exist, and LSTG has some rights to process them. What turns out to be false, according to the information I was able to get, is the story LSTG had been telling everyone about delivering substantial quantities of tailings to the Government processing plant between March and June of 2012, and of having 6000 tons of tailings in the processing plant awaiting processing as of March, 2013 when the plant reopened. The story LSTG told in some of its SEC filings about the Government plant "...operating sporadically since it reopened,..." is refuted by both the operating contractor and the plant manager in separate interviews with the local newspaper El Sol de Parral. The plant manager also refuted the claim made by LSTG that the Government plant had a one-year backlog.
I think the bottom line on LSTG was that the local processing plants were either unavailable or uneconomical, and the company needed to make a capital expenditure of about $1M to build its own plant. It could not raise the cash it needed, so it could not exploit the tailings. That's where I think things sit right now.
I've not seen anything on the Channeland web site that gives me the least bit of encouragement. I do continue to watch this company, although I no longer own shares of it.
