Kerr Mines Inc (KER)

[goldenpolarbear]

”...Obviously there’s going to be the economics of getting down there — we’ll have to drive ramps down,” he adds. “If the orebody continues at the same rate that has already presented itself, and we’re able to go down another 300 to 500 feet, we have the potential to add 300,000-500,000 oz. gold … that’s one of the belief systems that the geologists who have studied this project for us have.”

The company is also evaluating the copper content of the deposit, which could create a nice stream of revenue, he says, noting that copper assay values are distributed along the entire strike length of the Copperstone Zone. Of historic and new drill hole intervals that contain a gold grade of 3 grams gold per tonne or higher, and that were assayed for copper, the weighted average copper grade is 0.54%.

“We have some pretty decent grades and two different types of copper — sulphide and oxide — and the results will show how we can monetize it,” he says. “The sulphide copper does not float with the gold concentrate we produce and the majority of the copper, which is oxide, may be monetized as it flows to tails. So we’ve now started to look at that. It’s nice because it has the potential to be free cash. It’s free money because we have it with the gold and there’s an opportunity to create a good revenue stream.”

This week the company announced initial metallurgical results that demonstrated sulphide copper recoveries of up to 97% and gold recoveries of up to 91%.

The company’s shares are trading on the Toronto Stock Exchange at 31.5¢ per share within a 52-week trading range of 9¢ to 41¢ per share. The company has 235 million common shares outstanding for a $74-million market capitalization.

In addition to Ciavarella, who owns 11.5% of the company’s shares, and Al Tamimi, who owns 23.5%, Eric Sprott owns 8%.

http://www.northernminer.com/news/kerr-mines-make-production-decision-copperstone-early-next-year/1003791354/