Southridge Enterprises Inc (SRGE)

[I-Glow]

Actually, no I didn't I was showing that it was impossible to get revenues of $3.14 million from 9000 tons or ore which was actually tailings and a much lower grade.

I used 100% recovery and as I pointed out the best recovery by Goldcorp to one of their mines in Mexico was only 61%. So if you use that and the equipment Goldcorp has is state of the art as opposed to what is at Cinco Minas - the gold number is now $1.04 million. Due to the processing mining companies report revenues from gold only. If you look at the Goldcorp mine (Los Filos - The largest gold mine in Mexico), when reporting their financial data they mined and sold 334,900 ounces of gold. Goldcorp reported revenue from the mine of $522 million. They sold the Gold @ $1,553/ounce so 334,900 x 1553 = $520,099,700.

It is because Silver is mined as a by-product. Though much more plentiful than gold, it’s rarely found in nuggets or thick veins the way that gold is. In fact, 70% of silver production is as a by-product of other types of mining.

This highlights that much of the challenge with mining and marketing silver lies in this tendency to be a by-product. Quite often the mining company is geared up to handle a specific substance, most often gold or copper. Because of this, they look for a market to take the silver off their hands, freeing them to be able to concentrate on what they know and do best.

Actually, due to the way gold is processed the by-products reduce the earnings from a mine. With the Los Filos mine they have By-product cash costs (US$/oz) = $463.

So the real revenue from the mine is actually $1553/ounce - $463/ounce = $1090/ounce.

Basically, the $3.14 million from 9000 tons makes no sense. You would need a gold grade of 5.95 grams/ton and have 100% recovery and no by-product costs.

Also, if you check the Barrick Gold's Second Quarter Mine Statistics, you will see that they also only report Gold and worth noting the average gold grade at the Goldstrike mine is 0.163 grams/ton. Which makes the SRGE press release claim of 268 grams/ton ridiculous and as fraudulent as the Financial reports released.

IG