Replies to post #60428 on Colorado Goldfields Inc. (fka CGFI)

[nvtaylor]

Don't have a clue how refineries pay out.

A ore mill needs to run as long as possible, it usually takes 1-2 hours just to fill up the circuits, drop boxes, floatation cells, etc. from the time it starts. This material is called the recirculating load and basically doesn't get recovered. Based on the chemistry of the ore sometimes it takes hours just to get the mill "balanced" and running at max recovery. If you shut it down after 8 hours, you need to restart the whole process all over again, not very efficient!!! If the tons/hour drop too low, recoveries drop and it becomes uneconomic to run, so you can't run it very slow either. Trying to run it fast wouldn't work either since the grinding mills (ball, rod, etc) can only handle so much tonnage/hour. That is were some of the expansion to more tonnage comes from, you need to upgrade the grinding circuit.

Every mining company I've been involved with over the last +15 years since Bre-X, has used some type of formal reporting procedure for reserves. All have chosen to use the 43-101 or JORC report since they go above and beyond the SEC requirements and are more transparent.

Direct knowledge - tried to lease it 3 times. It always was a 350 ton/day mill.

[nvtaylor]

Sorry, when you said refinery I was thinking oil. I was going to use that as an example for milling when I replied to you.

Anyway, we use to send a sponge, which is the gold and silver left after amalgamating. Usually contained about 1,500 ozs gold to Johnson Matthey in SLC for procesing. They would charge around $30 per ounce to process and would sell the product. Normal back and forth assays regarding the gold/silver content until both companies agree and then they smelt the product to 9999.

[LJ Silver]

Ficose, I've got a question. So weren't we just talking about this last week?

3. Property, Plant and Equipment


On June 29, 2007, the Company acquired the Mill located in Howardsville, Colorado. The cost of the Mill was $1,400,677. In connection with the acquisition, the Company entered into a $650,000 mortgage with the seller, which is collateralized by the property and bears interest at 12% per year. All unpaid principal was originally due June 29, 2009. The due date on the mortgage was extended and is currently due in full on June 1, 2013.

So a CD was not needed to get money, it was a traditional loan they were able to get using the value of the mill? And that's what we think they will be able to do to get enough capital to pay for start up costs? Correct?
TIA
LJ