Silver Falcon Mining Inc. (fka SFMI)

[oryx]

Completely wrong.

Probably because the estimate of $400 Mil is grossly inflated.

Inflated, maybe, but grossly? 800k tons at 6 g/t is just under $300M. But as I've said before, it's irrelevant. They will abandon the ore dumps as soon as they start mining. Why? Because unless you have unlimited milling capacity, it's much better to process ore at 2.5 oz/t (or 1 oz/t, or 5 oz/t, but certainly more than the waste ore) than at .2 oz/t.

In addition, the yield from the tailings has not even remotely approached a level that would enable SFMI to pay the freight by doing this.

Not even remotely approached? Have you even run the numbers? 60 tpd at 6 g/t is over $600k/month. Not bad, considering the mill costs maybe $150-200k/month to operate. But 150 tpd after the mill expansion is complete is $1.5M. Their expenses, including operating the mill, building the smelter/vault/lab complex, mill expansion, and Sinker rehab, have been running ~1M/month. Assume they'll save at least $500k/month after the smelter, mill expansion, and Sinker rehab are complete, and that leaves $1M/month for exploration and the startup of mining. Should be more than enough.

Others may point out that the projected yields from Sinker are so far in excess of the tailings yield that SFMI is simply aiming for the biggest payback. I am not buying that argument.

Why not? You just said that processing the waste ore wouldn't pay for the operation (wrong), but then you say that's what they should continue to do (wrong). You think it's more profitable to process 6 g/t ore than 2.5 oz/t ore? Why waste the mill capacity on lesser grade stuff?

If there was truly $400 Mil in the tailings ... well, that would solve a lot of financial issues that SFMI has.

That $400M (or $300M, or whatever) of waste or doesn't just magically turn into money overnight. It would take maybe 15 years to process. OK if SFMI wants to cruise in low gear, but why spend 15 years processing 6 g/t (0.2 oz/t) ore when you could be processing 2.5 oz/t ore? I'll let you calculate the difference. (Hint: it's many billions of dollars). As far as SFMI's financial issues, that waste ore is what differentiates SFMI from a lot of startups. They can use the revenue from that to get to the good stuff.

[Processing the wast ore] Would enable them to generate more revenue than they could shake a stick at even before they started drilling.

Why wait 15 years to process the good stuff? It simply doesn't make sense.

No one in their right mind would ignore a $400 Mil "bird in hand."

It's not "in hand". It's in ore that requires processing. There is a big difference.