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Re: nvtaylor post# 56129

Saturday, 09/15/2012 9:40:12 AM

Saturday, September 15, 2012 9:40:12 AM

Post# of 67010
NV, I do not have any particular knowledge beyond what I read. That is why I used the word "surmise".

However, any entity who is starting the process of building a mill from the ground up, as you suggest in your post, will face the same or more obstacles than CGFI did. I believe they would be years from having a working mill. (Look how difficult it was for CGFI to reopen an existing mill.)
During this period there exists the opportunity for owners to mine and outsource the milling to CGFI. It makes economic sense to do this.
Also consider financing. As we have seen with CGFI, financing for a non-income producing operation is much more difficult, (and expensive), to obtain than for a working mine that is looking to expand. Having a source of income while building the mill would be a distinct advantage to any mine.
Furthermore, there are dozens of mines within a workable distance that would find it more economical to outsource their milling, not being interested in incurring the expense of their own mill. It is these mines that CGFI would be of service to.
Since the POW is not ready to accept ore for milling, mines do not have to presently be in the process of "ramping up" to begin mining at this point. And, as you have pointed out, there is a year or more of milling available from CGFI's own mines.

In CGFI's case it would be a poor management team who would sit on the sidelines and let one of the richest sources of ore in the state lay fallow while the opportunity exists to lease the rights to any of the many mines available, if their mill has the excess capacity. CGFI could have their pick of the richest deposits to lease. It is a matter of negotiating a lease with the existing owner.

I would also surmise that there are already talks with mine owners to lease their rights in the future. But that is just my opinion.


Don't take my word for it, Do your own research! Then you will know it's true!

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