Replies to post #891 on Shoshone Silver/Gold Mining Co., Inc. (fka SHSH)

[Haymaker1]

I'm not looking for a pizzin match, but irrational exuberance though contagious, can be misleading to the uninformed.

I have a good understanding of mining, having started in the industry in the early 70's, running an underground assay lab for a 5,000 tpd operation. We all have lots to learn and each and every project needs to be looked at differently

Mining narrow high grade veins is very challenging. There is new technology out there [Great Basin Gld is trying it] but can't be applied in all situations. The problem with narrow veins is that the only way to target high grade is to rock bolt sufficiently so that when you blast, the surrounding rock is kept in place. This works better in vertical veins. If the veins are horizontal you basically need to open the area up more for mucking equipment which in turn dilutes the high grade with marginal ore. I'm really trying to keep this simple.

Bottom line, I only know of a few companies that have been able to consistently mine over 1 oz/ton.
You mention that it would be nice to evaluate data. The challenge here is that with no financial history here, we are loss what the numbers will be. Here we go with the risk reward scenario again!

I did have a long conversation with the company this morning. I generally prefer a pp when acquiring a large position, but that will not be possible here as they don't have any near term plans.
I did ask how they will fund this next 6-8 months with the only revenue being one more batch of silver concentrate. They do have properties that they are looking for JV's on and are hopeful they will receive revenue from that option.
They will not be operating either mill until spring/summer or when ever the snow leaves the 6,000 foot level.

I feel that this is a fairly tight company that knows and has found ways to survive. However it doesn't seem that they have any plans for big expansion and are content to run small [hopefully profitable] operations.

With the pm sector especially juniors looking to perform well, I do feel there is good potential here. I'm hoping that they will learn how to mine the high grade with a profit and in turn drill and expand the resource. This will be a growth story and we as shareholders should eventually reap the rewards.
glta