There is a lot of frustration that that can come with mining. Sometimes, its finding the finances, sometimes its finding a viable resource, sometimes its poop or get off the pot.
Risk is part of the game in this industry, often companies think they need all this money to make it happen. However, if they had all the money they thought they needed...they wouldn't be mining.
my shoe string budget for my third project in the last seven years got reduced to a thread. Doesn't make it impossible...just more interesting.
I know they could do very well with the right people on a small operation and grow it. Once the gold starts coming out, its a hell of a lot easier to present the mine to investors and expand it.
To get started, a ball park would be a $100,000 to get into the vein and process 1-2 tons per hour on a small shaker table to concentrate it down. No chemicals. Just water recirculating in a closed 100-200 gallon system of hose, tanks and pumps.
processing at a half ounce per ton, or $600 x 10 ton per 10 hr shift (one ton per hour) is $6000 per shift.
If it can be pre crushed, then it would be possible to do 2 tons per hour and double up with $12000 per shift
Double it again if you add on a night shift so 2 tons per hour times two shifts of 10 hrs is $24000 per 24hrs
There own numbers indicate that it costs about $300-400 per ounce recovered. so even if that came out to an even 50 percent net, then they would still be making $120,000 every 10 days or $360,000 per month or $2.1 million per 6 month season.
That is what can be done with ONE test plant and one direction of tunnel.
If you've cross cut into the middle of the vein then you can double up on extraction of ore.
This area historically is astounding for mineralization which makes what I said above lucrative. There is a lot more in this area then people realize. I posted a piece of the historical in the Warren district.
They would only have to sell 10 million shares at a penny for $100,000 or 20 million shares at half a penny. Marketed properly and investors on the open market would respond. it did .40 in 4 days on assays alone in 2004.
Four seasons in Canada... Early Winter, Winter, Late Winter and Next Winter
