Andes Gold Corp (AGCZ)

[BigBadWolf]

$$AGCZ does not report anything as per industry standards....alone, that speaks volume especially w/ that Billion or so shares issued since it's decline of shareholder value.

It is important to remember that the reason why the industry and the exchanges are so touchy about how these terms are defined and used is because of a little thing called...Bre-X. Anyone remember that? If not, it might be worth a Google.

Here are the definitions of probable and proven mineral reserves according to the CIM:

Proven Mineral Reserve
A ‘Proven Mineral Reserve’ is the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

Probable Mineral Reserve
A ‘Probable Mineral Reserve’ is the economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

Here are the definitions according to AGCZ:

Host: How would you explain to them what the difference is between proven reserves versus, say, probable reserves?

Talbot: Alright well proven reserves are reserves that you have found, you have drilled, you have cut your drilling down to 100 foot centers and that you have gone ahead and determined gold is contiguous throughout an area and that if you are going to mine it you know you’re not going to be mining gold one day and find the gold disappeared. And so that you know that you have enough gold there to go into production, develop your mine and make it economically viable. All the analysis have been completed to define the amount of gold that’s available to be mined. Then you set your parameters for the mining and you’re ready to go.

Probable is you have found some outcrops on your property maybe done a little bit of drilling or you’ve done some trenching and found some gold samples. You sent the samples to the lab so that you know somewhere on the property there’s some gold but you don’t know what the grades are, you don’t know how much it is, you don’t know whether it’s continuous or it may be just a pod somewhere and you have no information to be able to develop a mining program because you don’t know whether there’s enough gold there to justify the cost of the mining program.

According to the industry, probable reserves are, in fact, "economically mineable". The definition provided by the company relates to preliminary exploration activities and has nothing to do with resource definitions...as the rest of the world understands them. What about this part: "You sent the samples to the lab...but you don’t know what the grades are...". Why would you send samples to the lab if you are not going to get assays (with grades) back?

No worries, though right? They are going to be mining so much gold it doesn't matter if they fudge a couple of things here or there. ...although with a billion shares out, the earnings per share are...kinda thin.