Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
It might look flat but it isn't. Exiting off I-80 at Wadsworth, Nevada, we drove 5 miles north east up a steep roads and still had climbing to get the the mine area. It's like Zane Grey would describe as a "hanging valley". Crescent Valley had ranches, vast acreages of trees, high grasses in areas and a lovely creek exiting at the north end. The Fernley mine is in an area that is rocky, sterile, very dry and at an elevation that would make drilling for wells difficult IMO. Their choice to go with NRG first was a great choice IMO.
From BUYINS.NET
NEWPORT BEACH, Calif., Oct. 28, 2010 (GLOBE NEWSWIRE) -- BUYINS.NET, http://www.buyins.net, a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance, has initiated coverage on Pacific Gold Corp (Pink Sheets:PCFG - News) after releasing the latest short sale data through October 27, 2010. The total aggregate number of shares shorted since August 3, 2009 is approximately 268 million shares. Approximately 36.4% of daily trading volume is short selling. The SqueezeTrigger price for all (Pink Sheets:PCFG - News) shares shorted is $0.0107. A short squeeze has already begun as stock currently at $.0205.
No, 200 grand isn't a lot. Do you know what they are attempting to do with this purchase? I don't but I have to wonder if other posters here have the right idea. Perhaps it does have something to do with the SEC, stock manipulation and reporting findings to regulatory agencies. Management holds almost 50% of the shares. I believe their best interest lies exactly where our does, in getting the share price as high as possible.
Gold properties are becoming harder to find and acquire. This article gives some compelling reasons for the acquisition of junior miners by larger players IMO: http://dailyreckoning.com/the-biggest-threat-to-the-gold-mining-industry/
With all the easy gold already discovered and new discoveries becoming more scarce, it makes sense that the industry will begin to consolidate. With a producing mine, who's to say PCFG hasn't been contacted about a buyout. For shareholders the best buyouts are based on gold reserves and diluted shares. This does reduce the OS a bit.
I have driven the periphery of the Fernley property. I think with the elevation and topography there, they will have difficulty in permitting and establishing wells. The NRG property is on a valley floor very near the water table with Mt. Tenabo and other surrounding mountains providing renewed water sources. Fernley is at a much higher elevation in rocky terrain well above the valley floor in an extremely arid area with virtually no vegetation. I doubt the same gold recovery process is easily replicated there. These properties may reside in the same state but their appearance is dramatically different.
Congratulations on being an expert in your field. I still doubt you know more than our management team with regard to the best ways of operating PCFG.
The SEC has a page on buybacks: http://www.sec.gov/rules/final/33-8335.htm
This page is for guys like me, buybacks for Dummies:
http://securities-law-blog.com/2009/12/04/sec-stock-buyback-rules-examined/
They can't buy back shares unless they have notified shareholders first.
So to you the management team isn't cutting it. They may be producing a nice pile of gold but you know how to operate the company in a more effective manner?
Is there another junior miner you're aware of that has done what these guys have done?
Exactly what equipment are you recommending that they buy and where should they place it?
I really doubt anyone on this board has more inside knowledge of what cash flows are and will be than Mitch and Rob. I doubt you have the experience to out perform them.
Every PR, they list the current OS total, carefully letting shareholders know they are not diluting. Now, a small but telling buyback of shares. Here's my favorite line from the PR....
"The share repurchase program will be funded by the company's available cash, after assessing for the working capital requirements of the company."
The statement "working capital" says quite a bit IMO.
An article on the gold industry found on another board. I recommend reading the link as it has an impressive chart. Based on the article, all small miners have a greater chance of a buyout at a premium price:
http://dailyreckoning.com/the-biggest-threat-to-the-gold-mining-industry/
he Biggest Threat to the Gold Mining Industry
By Matt Badiali
09/26/11 My friend Brent Cook is buying gold right now… But not for the reasons you’d expect.
Brent is no “doom and gloom” gold bug. He doesn’t think the dollar is going to collapse any time soon.
Brent simply knows the world is running low on gold… which could drive the price of his favorite stocks much, much higher.
He has unique insight into the gold business. He’s one of the best mining geologists in the world…and he spends an extraordinary amount of time visiting mines and analyzing mining data. He shares his thoughts in his Exploration Insights newsletter.
Last week, Brent told readers about the latest on a huge story happening in the gold business: Gold companies are spending enormous amounts of money to explore for gold…with little to show for it.
According to numbers from the world’s largest gold miner, Barrick Gold, the entire industry is having more and more difficulty finding new gold deposits.
Here’s how Brent summed up the situation…
Current global mine production is in the order of 85 million ounces per annum, whereas…the last time the industry found that many ounces in a year was 1999.
This dearth of new discoveries is despite the significant increase in exploration spending since 2002. Particularly disconcerting (to the larger mining companies at least) is the decline in discoveries since 2006 notwithstanding exploration spending has more than doubled from $2.5 billion to over $5 billion.
The years from 1850 through 1900 were incredible for gold discovery. That’s when prospectors found the giant goldfields in Australia, Canada, South Africa, Colorado, and California. However, the modern era of discovery didn’t begin until the 1960s.
Geologist Forbes Wilson found the world’s largest gold mine, Grasberg, in 1960 in Papua, Indonesia. Geologists John Livermore and Alan Coope discovered the largest gold producing region in the United States, Nevada’s Carlin Trend, in 1965.
Since then, we’ve scoured the planet for the “easy gold” — the stuff that sticks up out of the ground in relatively safe, functional countries.
But now, all of the “easy gold” has been found. (It’s a lot like the situation in oil, which I’ve told you about here.) Mining and exploration companies are still finding some good deposits… They’re just generally in inhospitable, remote, or downright scary places.
For example, one “top 10 in the world” deposit that I like, Seabridge Gold’s KSM Deposit, is a monster gold deposit… The only problem is that it’s in a far-off corner of British Columbia. To mine this deposit, the company needs to build a long tunnel…just to get the construction equipment in. I still like owning the stock. But it will take billions of dollars of capital investment to develop the deposit.
Another monster gold and copper deposit, Alaska’s Pebble Deposit, is next to a pristine wildlife area. This creates just as large a hurdle as a lack of roads.
Plus… The costs of gold production (things like fuel, labor, and infrastructure) has more than doubled from 1997 to 2009. The price tag to build a new mine these days can run into billions of dollars. The mine must be able to repay that cost within a year or two and then produce a reasonable return on the investment. The huge upfront costs set the bar high in terms of the size and quality of deposits that big gold companies are willing to pursue.
This just means the highest-quality, large, undeveloped gold deposits in the world are getting increasingly valuable. As $1,500-plus gold sends a surge of profits into the coffers of big gold miners, you’ll see fat premiums paid for great projects.
Mining giant Newmont paid a big premium in 2010, when it spent $2.3 billion to acquire junior explorer Fronteer Gold. One day, Fronteer was worth about $10 per share. The next day, it was worth $14. Investors doubled their money in a few weeks on that deal.
In sum…the world is running low on gold. The “easy gold” has already been found. That’s why Brent is scouring the world looking for great gold projects…
Right now, he’s a fan of investing in deposits in Mexico… Although you hear lots of negative “gang related” headlines from mainstream media sources, Mexico is actually a great jurisdiction for miners. And he’s made good money by owning shares of Almaden Minerals, which is exploring a promising gold project called Ixtaca.
Potential deposits like that aren’t easy to find… But they’ll be worth hundreds of percent more in the coming years.
Regards,
Matt Badiali,
for The Daily Reckoning
Read more: The Biggest Threat to the Gold Mining Industry http://dailyreckoning.com/the-biggest-threat-to-the-gold-mining-industry/#ixzz1ZBQtxpo8
The geo-tubes are west of the facility and almost hidden behind the processed soils. You can only see small portions of them from the north. Before processing began, they were easily seen but that is no longer the case.
When they place the new 'tubes, they should visible due to their size and placement. They are constantly running front loaders and trucks on the south and southwest. They will probably locate them to the west or northwest.
Barrick and Newmont both mine in the Crescent Valley the old fashioned way. They use chemicals and leaching.
Pacific Gold has chosen to use a non-toxic method where water is used to wash out the gold ores along with shaker tables, a centrifuge and a Knelson bowl concentrator. The water comes from onsite wells and they are using the geo-tubes to filter fines and clean the water for re-use. They can re-use the water countless times except for water loss. The biggest loss of water comes from the processed fines and gravel that remain very wet when they re-mediate the mine. That water ends up back in the water table, where it originated. The Nevada Department of Environmental Protection approves of their enviro friendly process and recently OK'd the placement use of additional tubes.
You've once again proven that you know nothing about this stock, it's management and what they're currently doing.
Even a cursory perusal of posts would provide correct information yet you consistently ignore reality to post inaccurate and misguided blather.
Please do some research before placing a message in lieu of trying to upset some posters on the board.
A hedge fund buying large quantities would be very nice. Based on same sized block MO, it appears a single entity bought at least 5.5 million shares this week. They spent around $200,000.00 to do so. At these prices, it could be retail. If they keep it up through next week, we'll know someone is serious.
I just hope they have to pay more next week!
Looks like I missed a couple. I like your number much more, the more they load, the higher this runs when they let it go.
During the last four trading days there have least seven 500K hits, all at the ask immediately followed by small hits at the bid driving the price lower. Whoever is accumulating is working both the bid and ask IMO. Waiting for enough sales at the ask to build and then buying. Shortly thereafter, selling several smaller blocks at the bid to erode the price for lower purchases. The bulk of the volume this week has been these large buys accompanied by smaller retail looking sales. Rinse and repeat. Someone likes it down here and your tinfoil hat guess is as good as anyone's at this point.
If you read last years timeframe, they ordered the geo-tubes on October 1, expected to have them delivered by October 15th and had them installed and tested by November 1st.
It doesn't take long at all to set them up.
Edited PCFG mine visit post, names were removed to protect the innocent:
We just returned from our PCFG visit and to Crescent Valley and the Pacific Gold Corp. processing site on Friday Sept. 15th. Nineteen miles south of I-80 on State Highway #306, we first stopped in Crescent at Sam's Corner Store to check the visibility of PCFG from some locals. I questioned a cashier behind the counter who spoke very little English and he pointed to a patron who had entered the store just after I had, a young mid-twenties friendly type named Daryl. To the question, “have you heard of Pacific Gold Corporation”, he immediately responded “sure I know where it is, my girlfriend works there”. He knew they had been operating for several months and said she was always busy there. He provided directions and they matched our information. Three miles south of Crescent Valley on the right, the PCFG site appeared. On our approach, looking west past the PCFG building, we could see a road with a vehicle making a sizable dust cloud heading our way.
We parked about 150 yards south of the facility by the PCFG sign and the entry gate and a worker immediately began walking toward us. They worked doing whatever needed to be done including security. The “Keep the Gate Closed Sign” was prominent so my first words were , “I'm sorry to make you walk all the way over here just to close the gate”. Motioning toward a second fence to the west, they replied, “the gate was for keeping cattle in but we put that fence up so we could have the gate open”. Their first question to me was “What can I help you with”. I replied, “I'm a PCFG shareholder and would like to take a look at the facility”. The answer was firm when answering “no”. There would be no visit inside the fence. The worker was friendly when answering other questions. I had no pre-prepared questions and expected no answers but they spent a minute or so answering and talking with me.
Does Management visit the site very frequently? The reply, “Mitch and Rob come by about once a month. The use of their names was familiar and easy as if referencing old friends. You could tell they liked and was comfortable with them.
How many shifts per day? “Just one for now”
Are you working weekends? “No, just Monday through Friday”.
Are you busy during your shifts? “Yes, very busy”.
Is the plant operating as planned? “Yes”.
Do mind if we spend some time observing and taking pictures? “No”.
They worker walked back onto the property and we looked for the most advantageous positions to take photographs. Highway 306 is listed at 70 mph and is very busy with mining type equipment, haulers and personnel and the easements on either side were very narrow. It was unnerving to be parked so close to such a busy road with very large vehicles flying past at such a high speed. We spent two hours watching, videoing and observing.
We saw 9 private personal vehicles on site. We saw at least ten workers there. We observed Komatsu HM400 trucks, at least three at once return from the mine site west of the facility and dump their placer gravels in a pile south of the building. Each truck would then drive several dozen yards to the north and west and park by a much larger pile of already processed gravels/soils. The Komatsu 470 front loader would then load five buckets of the much wetter, sometimes muddy gravels/soils into each HM 400 and they would return up the dusty hill and out of sight. This process was repeated every half an hour as they continued cycling back from mine to dump their “ore”, pick up a load of processed soil/gravel and haul it back to the mine for remediation work. Every two cycles, the water truck would accompany the trucks back the mine to water down the processed soils as we saw no watering of roads. The soil movement part of the mining process was extremely active. The mine from which they were hauling soils appeared to be a mile & a half to two miles to the west. The logistics are well planned in my opinion. The facility is easily accessed from the road and the mine is close enough to cycle soils quickly and with low cost.
With regard to the building and actual processing of ores. We did not see the loading and output conveyors operate at all. We could see up to four men inside the building and could hear some the sound of some type of equipment operating but could not see any movement from multiple locations. The fence closest to the facility is opaque from the road and gives no easy looks.
Water for the site is via well. We heard the front loader operator ask another worker if they knew how to turn the well on and off. He then showed them the procedure. The well head is controlled by a fire hydrant type apparatus and a fire hose sized tube. I believe that is the reason we have the geo-tubes as PCFG has water use limitations. They lose a lot of water in the soils they process and the geo-tubes are huge conservators of the precious commodity.
Overall impressions? Based on the amount of activity with the huge trucks hauling in new ore gravels and hauling processed muddy soil/gravels back for remediation, it is a very busy site. The workers all kept busy and worked well past noon without breaks. They all seemed to know their jobs and kept busy working as teams. It seemed to us that the internal processing equipment can ramp up to have much more capacity than we presently observed. My belief in management is extremely strong and supportive. I believe they are and have been very forthright and honest with us with regard to press releases. Yes,we are presently a small mining operation but there is room for growth and we are surrounded by other highly successful mining operations. I really like this little company and see great things continuing to happen. I have more confidence than ever before.
Items we could inventory easily?
At least ten workers
1-Water Truck, probably around 2000 gallons
2- Komatsu 470 front loaders
3-Komatsu HM400 articulated trucks:
http://www.komatsu.com/CompanyInfo/profile/report/pdf/148-06_E.pdf
1-Komatsu Road Grader model 655
1- Backhoe
Trip to the Teddy mine.
After visiting the Crescent Valley, we drove back to I-80 and drove west for three plus hours and exited the Freeway north at Highway 447 through Wadsworth for some reconnaissance. We found a very broad and heavily used road and used our two GPS's to drive to within a couple of miles of the Teddy property. There are mines and activities in every direction near the Teddy sight. Nearby, entire mountains are being consumed by heavy equipment. We had to meet a family member in Reno for the Air Races so we turned around to meet our appointment time. We planned on returning on Saturday to complete the visit.
We attended and enjoyed the wonderful people, aircraft and races at the Reno Air Races all day Friday until the tragic late afternoon crash and death of Jimmy Leeward, many spectators and the destruction of the P-51 Mustang the Galloping Ghost late in the afternoon. The horrific accident happened at our section and we at one point were directly in the path of the doomed pilot and aircraft. Jimmy Leeward is a HERO and his actions saved hundreds including my wife, sister and myself who were briefly in harms way!!! He made two distinct jerky adjustments to the planes trajectory in the micro seconds before its impact that enabled the aircraft to avoid hundreds of people in the E Section reserved seating grandstand. Jimmy and his beautiful aircraft hit the tarmac just feet beyond the grandstand but unfortunately, he could not avoid the people on the ground in the box seats. Our thoughts and prayers go out to Jimmy's family, who were present at the race, to the injured and dead and their families and friends. We have nothing but praise for the City of Reno's EMT's, hospital personnel and Police and their emergency preparations. They were professional and phenomenal in their quick and earnest reactions and aid to the affected. There were hundreds involved in treating the dead and wounded. The experience was so sobering, traumatic and emotional that we did have the temperament to revisit the Teddy mine area but left immediately to drive back home.
The video's were taken with our camera and has no image stabilizer so it's very functional but a bit shakey. We feel they are very factual and informative but I apologize for the amateur nature.
Youtube is not allowing me to post my videos. When typing in to set up an account it claims the email address is already being used. When I try to reset the password, it says no account is set up by the email address. If someone wants to provide an email address, I will forward the videos so they can be posted for the board.
Thanks.
Is Gold Cheap? Who Knows? But Gold-Mining Stocks Are
by Jason Zweig
Monday, September 19, 2011
tweet3
Email
Print
provided by
Growing numbers of investing experts have been declaring that gold is a bubble: an insanely overvalued asset whose price is bound to burst.
There is no basis for that opinion. And understanding why can help point an investor toward clearer thinking about frenzied markets.
Sure, gold seems expensive. At its recent price of $1,813 an ounce, gold is off only slightly from the record high of $1,912 touched on Sept. 6 (unadjusted for inflation). Gold is up more than 40% over the past year, largely on fears that paper currencies like the dollar won't retain their value.
But that doesn't mean it is overvalued. Unlike bonds, which provide interest income, and stocks, which produce dividends and earnings growth, gold generates no cash flows. As John C. Bogle, founder of the Vanguard funds, told me two weeks ago, gold "has no internal rate of return." As a result, there isn't any reliable way to tell what it is worth.
So the people who say gold is in a bubble might well be right. But the people who think gold is heading for $2,500, $5,000 or $10,000 also might be right.
[More from WSJ.com: Don't Join the Ostrich Generation]
Folks on both sides would be more intellectually honest if they admitted that they are just guessing what gold is worth. With no measures like price/earnings ratios or bond yields as benchmarks of value, figuring out whether the precious metal is cheap or dear is like trying to solve a Rubik's cube while you are blindfolded.
Decades ago, the great investing analyst Benjamin Graham pointed out that there is no such thing as a "good" stock; every company is good at one price (when it is cheap) and bad at a higher price (when it is too expensive). But try asking a gold bug at what price he would sell, and you are likely to get an answer somewhere between $6,000 and "never." Ask a gold skeptic at what price he would buy, and you be met with silence, followed by "never" or a quavering "$900, maybe?"
Precisely because I don't know how to determine its fundamental value and have never been able to identify anyone else who can, I haven't written about gold for years.
[More from WSJ.com: When Your Child's a Spendthrift]
But there is one aspect of gold investing where it is possible to make rational estimates of value: the stocks of gold-mining companies. And, by historical standards, they seem cheap—based not on subjective forecasts of continuing fiscal apocalypse, but on objective measures of stock-market valuation.
"We haven't seen [low] valuations like these since 2008," says Joe Foster, gold strategist at Van Eck Global. But financially, gold miners have "never been in better shape." Van Eck's Market Vectors Gold Miners (GDX - News) exchange-traded fund holds 30 mining stocks.
Several big gold-mining companies—among them, Barrick Gold (ABX - News) and Newmont Mining (NEM - News) —are trading around 14 times their earnings over the past four quarters, virtually matching the Standard & Poor's 500-stock index at 14.5 times earnings. Even with gold at record highs, the shares of gold miners are trading at an industrywide average of roughly 18 times earnings, at 2.4 times "book" or asset value (versus 2.0 times for the overall stock market) and at one of the lowest ratios on record to the price of the metal itself.
Yet mining companies have rarely if ever been more profitable, and should be able to generate high returns so long as gold stays above $1,500 or $1,600, points out John Hathaway, manager of the Tocqueville Gold Fund.
Gold stocks aren't a low-risk play; like the metal itself, they can burn you, especially if you expect to get rich quick. And gold mining has been the classic boom-bust industry, with managements squandering money on acquisitions and bad investments during the fat years and retrenching during the lean years.
[More from WSJ.com: Estate Executors: An Honor...and a Pain]
"The industry has done terrible, asinine things," says John Tumazos, an independent metals analyst in Holmdel, N.J. "I own 23 or 24 gold stocks, and I probably have a loss position in half of them even with gold at $1,800," he adds. "One of them I bought when gold was at $300." Smaller gold companies can be particularly risky.
Still, Mr. Tumazos and others say a new generation of management in the gold industry is less tarnished, and that rising dividends are likely. As Caesar Bryan, manager of the Gamco Gold Fund, puts it, "We think they will be returning capital to investors instead of taking it from investors, which is what they've historically been good at."
Of course, if gold goes back to $900, these stocks will go right down with it. But if the precious metal holds steady or keeps going up in price, gold shares could pan out, too.
http://finance.yahoo.com/banking-budgeting/article/113520/gold-mining-stocks-are-cheap-wsj;_ylt=AgyQfzMzXEVFslX23gegsIq7YWsA;_ylu=X3oDMTE2OG5va2JuBHBvcwMxMgRzZWMDdG9wU3RvcmllcwRzbGsDaXNnb2xkY2hlYXB3?mod=bb-budgeting%20&sec=topStories&pos=9&asset=&ccode=
The second video which was actually taken first is on Youtube:
The first video is uploaded to Youtube:
The processing building and road grader out front. The road grader and backhoe were the only equipment pieces that weren't in use during our two hour stay:
http://s1083.photobucket.com/albums/j385/airdale2/?action=view¤t=022.jpg#!oZZ4QQcurrentZZhttp%3A%2F%2Fs1083.photobucket.com%2Falbums%2Fj385%2Fairdale2%2F%3Faction%3Dview%26current%3D005.jpg
Workers near the processed soils pile after loading the trucks on their return to the mine. The pile looks very dry but is extremely muddy on the bottom of the interior from all the water used in processing the soils:
http://s1083.photobucket.com/albums/j385/airdale2/?action=view¤t=018.jpg
Water truck and ore hauling Komatsu passing each other on the road west of the plant:
http://s1083.photobucket.com/albums/j385/airdale2/?action=view¤t=021.jpg
Muddy tires on a front loader, loaded processed soils for the trip back to the mine and remediation:
http://i1083.photobucket.com/albums/j385/airdale2/022.jpg
Thank you kind Sir. Can someone please provide a quick tutorial on posting photos.
Sounds like a great idea, will do.
We're returning Saturday and the trip into Crescent Valley is paved and close. IMO, it's still worth the drive by to check activity.
Pictures will be posted the following Monday. Not sure what to do with the video if posters are interested.
Leaving tomorrow for the Reno Air Races 14-18th. We'll be traveling I-80 and plan on three stops at PCFG properties. The first stop is Wednesday afternoon at Nevada Rae Gold in Crescent Valley for several hours of observations, pics and video. After spending two days at the races, we will begin the return trip on Saturday. Heading back east we'll visit the PCFG Teddy property north of I-80 onto Highway 447 and Wadsworth. It is called the Lower Olinghouse field and is in Free Frank Canyon. We're curious if any preliminary work is silently happening on the "Fernley" property. Would also like to talk the locals about any rumors that may be adrift. From there, back to Nevada Rae Gold and some Saturday and weekend observations of activities, equipment usage, manpower and hopefully some discussion with Crescent Valley residents for information. Saturday's visits have some flexibility so any additional legitimate ideas that will enhance the trip are welcomed.
Thanks for your efforts on extrapolating and posting your projections, based on the companies August 15th PR.
Some will appreciate them and it will give them guidance. The wise always look to what the future will bring. Others won't appreciate the effort and they will give you grief.
At the very least, you've provided a provocative tool that can provide additional discussion and a basis for critical analysis.
Why don't you think back to the share price of one year ago and take solace in knowing we aren't sub-penny:
http://www.otcmarkets.com/stock/PCFG/chart
Think back on all the things this company has accomplished in the last year and realize how lucky you are to hold stock in this sector with this management team.
-A proactive Mangement team that provides frequent detailed updates
-Geo-tubes successfully tested and utiized
-Huge debt issues paid off
-Vastly upgraded concentrator setup
-Pilot Mountain property sold with nearly a half million cash banked
-Acquired rights to B&B property
-An actual gold producer set up to glean around 550 ounces per month at full production
-Have applied for additional geo-tubes and a far larger processing capacity
If the share price appreciates into the next year as a reflection of the companies true value, we should all be smiling.
Very nice find bgseth and thanks for yelling it out ViewMaster! Looks like an immediate $392K in the bank for our little company. It's a great time to have some money to further the efforts of the gold fields.
This Management team has procured some very nice properties over the years, by buying when markets are weak and having the patience to hold until values rise. They buy low and sell high.
edited post!
Ref: 480,000 >< .4grams = 192,000 grams, divided by 31.1 to convert to ounces = 6173 ounces per year. I know it is over 6,000 but my original question, which you fail to realize is why the range 6000-12000 was released.
I was wrong in using the 480,000 cubic yards. Wolverine has correctly pointed out that the updated figure should be 540,000 yards (810,000 tons of ore). That works out to almost 7000 ounces produced under the existing permit. That certainly meets their estimate of between 6-12000 ounces.
Ref: "The range should have been a lot tighter, you know this."
No, I don't know that the range of estimate should have been tighter than what they gave us. I have never been responsible for providing investors guidance from a publicly held company.
Management appears to have correctly estimated the numbers so I don't have a complaint. I like the company quite a bit and think they are one of the most transparent Penny stocks around.
1- Anyone reading your post that had not read the companies PR would assume that for the entire month of July, they only processed 30 ounces. You carefully omit the accurate time frame and the most salient reasons why production was limited. Misleading and not even close to objective. 30 ounces of gold is "silly". Training personnel, calibrating, testing soils are silly? That's objective terminology? Hardly. It is your very biased opinion.
2- The estimates are accurate, your numbers are off.
3- You're not allowing them to get up to permitted volume with your estimates. The permit allows for processing of up to 480,000 cubic yards per year (see link below). At .4 grams per ton and that amount of material the ounces produced per year is over 6000 ounces annually. They are planning to process 120,000 yards from August to December. THIS IS NOT AT THEIR MAXIMUM THROUGHPUT. They're continuing to "scale" up to maximum which will be at what the permit states. The company is doing what they PR'd.
http://www.pacificgoldcorp.com/news101123.html
http://www.pacificgoldcorp.com/news110815.html
Nice post. You put thought and reasoning into it. Thank you.
You took complex answers from the company and slanted them. It's sad that you change the companies text to meet your own agenda.
Did they really process for the month of July as you stated? No, it was hardly more than two weeks of processing.
Your text:"To mine only 30oz of gold in July was a little silly."
Could they have produced far more gold than the 30 ounces? Yes, easily. Why only 30 oz? Were they processing ores that contained .04 grams per ton gold? No, they processed a mixture.
Were they running at full production? No, they were testing equipment. They were also testing gravels. They first ran the material that was in their yard as it would need to be moved anyway. Yet this is silly in your opinion.
Are you suggesting that the company is "silly" when they test and calibrate equipment? Are you recommending that they just run full bore immediately disregarding adjustments to achieve maximum gold extraction? Doesn't it make more sense to calibrate and extract as much gold as possible?
PCFG PR Aug 15:"From the stockpile gravels the Company produced approximately 30 ounces of gold. The overall gold grade of the stockpile amounted to approximately 0.2 g/yd3. The mudflow which was a large portion of the stockpile had an average gold grade of about 0.1 g/yd3. The grade of gold within the pay gravels of the stockpile were between 0.3 and 0.4 g/yd3. Due to the commingling of the gravels over time (the stockpile was mined in 2007) an exact number for the pay gravels was more difficult to determine."
Your text:"In the November PR, they stated that they would like to produce between 6,000-12,000 ounces per year."
Where does it say this won't happen. PCFG has the most ecology friendly concentrating system in the Crescent Valley. No toxic chemicals are used. They have requested the allowance of far more geo-tubes which would increase production exponentially. Are you suggesting this won't happen and they are limited to the equipment at hand and they have no plans to increase production?
Your text: "Third, they stated that the mill can run 200 yd/3 per hour, now we are down to 150yd/hr." Here is the companies answer to your question.
"The Company has limited the feed rate to the plant in order to make sure that the plant was operating properly during an extended period. In August and September the Company plans to increase the plant throughput gradually on a weekly basis with daily targets of 750 yards by the end of August then up to 1,000 yards by the end of September, eventually to as much as 95% of plant capacity.
I won't waste any more time looking for inaccuracies, there are enough here.
There are misrepresentations of the facts in that post, I wouldn't take it very serious. The same poster continually poses everything regarding PCFG in a negative light.
Oddly enough, one post a while back boasted of the vast amounts of money they had made on PCFG.
Since new posts continue to appear fairly frequently one must assume the poster expects more money will be made on PCFG in the future. Why waste time when there isn't money to be made. That fact is quite ironic considering the the continuous negative slant of their posts.
You are more than a little correct. Read the USGS section on the first link. Read the entire second link. It has the potential to the "the largest" gold field. It is littered with mines.
http://en.wikipedia.org/wiki/Ralph_J._Roberts_(geologist)
http://goldinvestingnews.com/world-class-gold-deposits/the-cortez-trend-nevadas-biggest-gold-field
They aren't very far apart. Here's the Wikipedia maps showing locations on both. NRG is virtually on the border and would be 5 miles south of the location on the Crescent Valley map.
http://en.wikipedia.org/wiki/Cortez_Gold_Mine
http://en.wikipedia.org/wiki/Crescent_Valley,_Nevada
South west. The Barrick Cortex Hills mine is located in Lander County. Nevada Rae is 22 miles south of I-80 and about 5 miles south of Crescent Valley. It is located in Eureka County, which is east of Lander Co..
Thanks for the correction. I didn't want to obfuscate the point with multiple price entries so it was ballparked at $4-500 per oz.