Advantego Corporation (ADGO)

[twilko]

AKvetch,

To answer your question, I clipped part of this article off their web site. Happy reading. Also some other "pro" GE articles.

"In its final phase, Golden Eagle plans to expand its Cueva Playa operation to 11,000 tons per day. Once this production level is reached, the Company projects that its cost per ounce of gold produced will be less than $75."

This can be found on their web site. The address for the article is: http://www.geii.com/cgi-bin/gei.cgi?action=disp_sub&.page=pr_0211a

Out of the mouths of babes. Here is another cut and paste:
(The math does not quite work out, but the final #'s are OK)

Yes, it is amazing how previous operators, including GE, operated without getting the fine gold in their hands.
I have been re-reading a lot of the published material and they state that as high as 90% of the gold was "lost". Numbers of 50-70% are common. So, the previous operators were throwing out the baby in the bath water!
No wonder people are puzzled why previous operators didn't recognize what the total gold resource was. "What you don't see is what you don't get".

BTW, if I am reading it right, the BD report explains that they only panned the samples to get an "indication" of the presence of gold, not to accurately quantify it. They were using a panning method to recover gold, to simulate what would be recovered using the old method of recovery, without any fine gold recovery. That is what is throwing people off that are looking at the BD analyses, and seeing that they were much lower, on average, than 0.5 gpt. I eyeballed the BD results, and saw where the average was going to be in the 0-0.25 range. Using 0.125 as the mid range number I multipled by 5.5 to get 0.69 total. The 5.5 comes from an average of using 50% (x 2) and 90% (x 9) losses. Of course, if you use x 4 (80% fiines losses) you get 0.5 gpt.

I read one incidence where someone treated the tailings in the lab and got 0.4 gpt. Throwing out the baby in the bath water, indeed!

Take the 0.5 gpt we are now getting, throw in some paystreak material every now and then, and we may get 0.7-0.8 gpt, just my opinion. We could get Rod Steel's "most likely" grade of 1.0 gpt. We shall see. The beauty of it is in a few months we will learn what grade we will average with our "big" 11,000 tpd plant. And, as Rod has postulated, these plants possibly could be modified and operated at double or triple that rate.

Now you know more than I do!

Terry