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Phew, okay thanks - I thought I was going to have to take back everything I said.
So Pro we aren't going to be on the Pampanas River after all?
The Yele is in the area but on a different river right?
LTI, the company had assays between 1 - 10 grams/ton on the Pampana.
Our competitor has confirmed 1 - 1.5 grams and are still tuning their dredging/concentrator process.
That says to me SGCP will recover at least 1 gram/ton of gold and maybe MORE on the Pampana.
The lastest forecast is rare earth metals will continue to go up due to shortages and the Chinese monopoly. So SGCP also has that as a potential future metals resource. There is an outside chance some of the rarer REEs might go up 50x in two years.
Pampana .. Pampana!
Going back to Pampana with DREDGES is the most significant step towards PROFITABILITY and future growth. The Pampana for whatever the reason has incredible mineral riches.
Every assay/lab analysis that any company has done on the Pampana shows the potential for riches including SGCP sample assays in 2007/2008.
JMHO
Banjo, our competitor on Pampana has verified a 1 - 1.5 gram recovery of gold/ton of sand-gravel (1 month of operation)
So on the mineral rich Pampana the company's "conservative estimates" for gold recovery are probably spot on (1 gram/ton)!!!
***SGCP future is BRIGHT!!!
So next year "year round" gold/diamond production:
1) Hopefully 1 small open pit gravel mine operation
2) Dredging for gold/diamonds on Pampana site [2?]
3) Dredging on Zimmi[1], Bo[1], Yele[1]
4) Refining tons of gold sand concentrates
Farming on 3000+ acreas including 2 harvests for some crops
Kiri trees flowering/seeding for the 1st time. And from the seeds/saplings will dramatically increase acreage for kiri trees.
CC document validation/completion
Pampanas has GOLD,diamonds and 11 of 17 rare earths plus titanium.
[If rare earths go up 30x in 2 years, the company may decide to ship them to South Africa refinery in 2013/2014].
---------------
***Sounds like we still have a chance to be profitable THIS YEAR!
From post #705 (not sure how relevant this is):
How much gold are we talking about?
TORONTO, Sept. 4, 2007
Geologist Alieu Madhi's report on the potential gold values for the Pampana North property was based on .93 grams per ton. He estimated the gold reserves to be just over 936,000 ounces. Madhi's report is based on extensive bulk sampling work completed by the National Diamond Mining Corporation work done by U.S. mining engineer, Mike Manke. Sierra Gold's recent assays are over 12 times higher than those found in Madhi's report. Mr. Manke's report classified the Pampana North concession as a larger grade placer deposit as defined by the U.S. Bureau of Mines.
I'm excited that the company is expanding operations to the Pampana.
The Pampana River basin is imo the mineral treasury of Sierra Leone. And probably it greatest financial resource.
Gem, just maybe the company will be profitable for the first time ever!!! What 800 oz gold recovered needed?
Hoping for the best. Could very well happen. Wow.
Expanding to the Pampana is a GOOD thing. From what has been posted, SGCP recovered lots of gold on this river. Maybe the Pampana will give us 200oz gold/month.
Thanks Pro!
Me too. Thanks STI.
Great stuff.
South Africa: SA to Build 1,2 Billion Refinery for Rare Metals
Friday, 19 February 2010 08:25 Bheki Mpofu - Business Day
Operational by 2014.
Uks, as I said before, SGCP is looking at rare earths. Not sure if they will do anything with them.
But how can you ignore metals one is already dredging in SL when they are going up 5x - 10x annually?
Uka, two other companies in SL are planning to recover rare earths. So they must have plans to sell them to someone to process. So why not SGCP within 2 years?
Like to see company after sampling/cores begin 1 or 2 small open pit mines on alluvial deposits (sampling will prove richness of deposit and give financial stability).
Like to see company begin dredging operations on the Pampana with SGCP selling rare earths sands to a partner (50/50 split) who already processes rare earths. Of course Pampana has lots of gold according to posters on this board.
[Speculative power of rare earths is somethingelse: saw 1 pinksheet jump 80x in 3 months without producing anything!!! - wish I had invested, but had no idea]
Agriculture/husbandry seems to be the truly bright spot - growing and now profitable and of the greatest benefit to the farmers and population of SL.
Companies are going to recover $billion in minerals/metals from SL, SGCP has a head start. The potential for SGCP is huge, despite a disappointing mining season so far.
imo 1 small alluvian gravel pit mine producing 50 oz gold/month would stablilize everything. It could be productive from Oct - May. It could provide $70,000/month and provide a financial floor for SGCP.
Dredging obvious can be hit and miss: weather, poor site, silt, high river, shifting conditions. Risky
A land site one can drill pore holes and sample the entire area. There would be far less uncertainty as to the quality of the deposit both overburden silt and gravel. Stable
Sarshee, I think of them as potential timber assets and the source for kiri tree seedlings for others to grow timber or attempt their own CC.
If a CC happens great, but for a growing SL, timber is very important.
$BILLIONs to be made in the minerals of SL.
If not SGCP, then plenty of others.
SGCP is in the right place at the right time.
They just had a bad mining season.
SGCP has the potential of making $billions because there is gold, diamond, titanium,and RARE EARTHS in huge amounts in SL.
Longterm, that's why all these startups are moving into SL.
Won't be long before large companies begin moving in imo.
There is incredible wealth and riches to be made in the alluvial deposits and sands and hills of Sierra Leone.
If not SGCP, others will mine/dredge and make their companies $billions.
Bottomline:
- Company has recovered 2 oz/day with 1 dredge several times before over the last 4 years. The company now has the equivalent of 5 50 tph dredges == 10 oz/day or around 250 oz/month. (They have done this already. So obviously they can do it again)
They can do this. They have done it before. Maybe the simplest solution is if they increased sampling 10x before choosing a site to dredge. Or maybe a combination of increased sampling and some consultant help.
- There is incredible wealth to be made from the gold, diamonds, RARE EARTHS, and titanium deposits in Sierra Leone.
SGCP has a bright mining future. Now I hope they distribute the risk by having a series of small open pit mines near the rivers as well as dredge the rivers.
SGCP is in the right place at the right time. The future is BRIGHT. They just may need a little expert help and imo definitely a LOT more sampling of gravel.
awhitefish, if see errors let me know.
The figures published by the company in the latest FR is bascially 5x of previous results when they only had one dredge working.
The company has a bright future. There are tons and tons of gold, diamonds (gem quality), rare earths, and titanium in SL.
The company is just going thru a "bad" learning curve. Maybe an expert consultant with years of experience dredging and refining gold could bring a 5x jump in productivity. Or maybe it's just a case of a series of bad luck: high river flow, sickness, sky-high fuel, shortages, "bad" locations.
They have 250 tph capacity with plans to expand. They can look for better locations and maybe do some more extensive sampling.
This is not a scam. Doug and John can fix the productivity issues. They hire expert consultants and do more extensive sampling.
Melt,
No one knows how much gold is in the concentrates: 10 oz/ton or is it .0001 oz/ton. When they dredged before they had sand concentrates - not sure if they ever processed them though.
The sand concentrates may not be worth much or just maybe worth alot. Maybe it will cost more to process than there is gold in the sand concentrate.
At this point it is just a big ????
SGCP mgt (Doug & John) failed by their own standard: expect very good results, conservative estimates.
Most people seeing the lack of diamond results would say "scam". It's like an investment house promising hundreds-of-thousands and winding and only delivering with tens-of-dollars.
The gold recovery is truly puzzling - they have been at this for 4 years and at least several of those years (for a few months) they averaged 30 - 50 oz gold recovered/month with ONE dredge.
Now with the equivalent of 5 - 6 tph dredges they can only average 50 ounces/month. Basically they are doing 5 times WORSE than previous years. If they had done as well they would have around 200 - 300 oz/month or around 10 oz/day!!!
In other words when the company had one dredge, they have averaged 2 oz/day or 50 oz/month. So the company should be able to recover 10/day or 200 - 300 oz /month.
So the gold recovery is disappointing compared against previous years.
Instead doing much better this year, one could say they did 5x worse in gold recovery.
ttmasher, a buy-in might be possible. I see it a lot where someone/corp buys 30% stake and a board seat. Of course for a few million a large corp could buyout the entire company or effectively take controlling interest. That also all true of our startup competitors. A few million and someone could take controlling interest in all the dredging startups in SL.
Bottomline: SGCP still has 4.5 working 50 tph dredges;
And now a disappointing 1 mining season behind it.
Future:
The company only needs to retrieve 1200 oz gold to have a profitable year. That should be doable with the equivalent of five 50 tpu dredges. And maybe a small open pit alluvial gravel operation.
They can spend the offseason testing/coring optimal locations. They just need to find a couple "rich" deposits. Maybe Zimmi still is that "rich" deposit.
Agriculture is now even to profitable (can stand on its own).
The goal has to be recovering 10 oz gold/day using the 250 tpu capacity.
I'm just saying Gem may be right. There is a Canadian firm that will operate rare earth mine in South Africa. They might show interest in SGCP's rare earth potential.
As far as I know, this the first time ever that the company has stated something like this. Why?
Cork daunting for a small company, but not for MolyCorp whose business already is rare earths and currently buying up companies not already bought by China. Of course China might be showing interest - why not another- since they already own 95% of rare earth producing mines/companies. Or a South Africa firm.
As noted by Gem from the FR:
"We are a small but growing company and a lot of larger organizations are taking note of our activities and potential."
Gem, I think you are absolutely right! Buyout/JV/Partnership
For a larger corporation - especially many in Canada or US - the potential for recovering large amounts (11 of the 17) rare earth metals plus titanium must be eye-opening. Rare Earths are going up 10x annually because China has a monopoly want to use it internally. Of course the gold and diamonds are good too.
The RARE EARTHS, gold, titanium have to be enticing. SGCP (Doug) has the relationships with the Paramount Chiefs to get the best mining land and leases (they are expanding leases!!!).
Doug & John might spinoff the Agriculture and CC business. I think the farming/husbandry is Doug's "baby" and CC is related.
the company with 4.5 dredges should have been able to recover 300 - 400 oz (PLUS the sand concentrates).
why are they only able to recover only around 50 oz with 4.5?
That is pretty bad, SGCP has seasons where 1 dredge recovered 50 oz/month.
The one good thing: they are recovering gold each day just much less than hoped for.
On hindsight, maybe the company would have done better if it had not moved the dredges (103 ounces with 3 dredges) vs 50+ oz/month with 4.5 dredges.
So what's the conclusion? The virgin "pay gravel" is really just mostly gravel? If we are out of gas/diesel, back to the 1850s and water, shovels, and sluce boxes.
Where oh where are those diamonds?
Recovering gold/diamonds every day. Company works to increase productivity - the gold and diamonds are there. Will dredge some in rainy season again. Will process sand/overburden concentrates.
Stock could be $.005, on that fact alone - recovering 1 - 2 oz gold every day and improving. Wonder how much of the gold is being lost in the dredging/recovery process. Might be a lot.
SGCP just needs to increase efficiency/productivity by 5x.
Instead of only recovering 2 oz gold/day, they need to recover 10oz gold/day. $15,000/day *25days = $375,000/month.
They can get better. 5x more gold/diamonds is definitely there - they just need to get better at recovering and processing it and they can always hire a consultant/expert to help them be more productive.
Pussim I agree. The company BADLY missed their estimates and their should-be-a-very-positive-year. The season they had been waiting and planning for.
Good part: they are recovering gold every day and getting better at it. It's not like the gold & diamonds are not there in the alluvial deposits and in the river sands of Sierra Leone.
Still believe they are "losing" a lot of the recoverable gold. Not sure what is happening with the diamonds.
I think hiring some expertise will help them out next mining season - the gold and diamond and rare earths and titanium are there. And others are coming into Sierra Leone to recover them.
How did the company come up with their "consevative estimates".
Sounds like diamond recover is off by 40x to 50x.
And gold off 5x to 10x.
What they did they use to come up with the estimate???????
Sounds like Zimmi turned more into a whimper than a large bonanza basin. Strange I thought the overburden was rich in gold.
This FR is exactly inline with them needing to sell shares every month. I think they are losing a lot of "recoverable" gold in their dredging process. Maybe they need to hire an experienced dredge-to-refining proceesing expert.
Strange diamonds should be the easier mineral/metal to process - just a series of sieves to capture and personnel to hand sort the diamonds out (no mining experience here).
$2000 - 3000/day or approx $80,000/month.
So this why they are selling shares each month to make up the difference.