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Re: stervc post# 72236

Saturday, 12/01/2012 10:56:45 AM

Saturday, December 01, 2012 10:56:45 AM

Post# of 167964
What you have failed to take into account are the mining conditions as reported by Tumi in the underground mine.

The price of gold has nothing to do with the dangerous conditions plus, as Tumi noted the resources were too low.

Additionally, a review of an underground high-grade mining option gave resource numbers too low to be of interest to the Company, particularly when having to deal with a large number of historic open stopes.

Then, no one from SRGE has addressed the problem of a high ratio in the surface or open pit mining.

Although a resource was established for Cinco Minas, the results of a scoping study previously undertaken by Behre Dolbear indicated a very high strip ratio for an open pit mining operation, such indication having been confirmed by in-house studies performed by the Company's technical consultants.

It states a VERY HIGH strip ratio - this means how much overburden you have to remove to get to the ore.

I haven't seen what the ratio is and you have never addressed this in your DD. So you can not make the statement that it is now economically feasible to open Cinco Minas.

Why in all of the press releases by SRGE has the mining ratio not been discussed?

Stervc, without those numbers you are just using fantasy numbers that have no bearing to the reality of Cinco Minas.

IG