had a little lunchtime chat with Mike today. In lieu of some recent
posts on the board, I asked him some pointed, straight forward
questions regarding many aspects of the company, it's projects and
future growth. His commitment and belief in the company and its
projects, particularly the viability of Nash Creek, is quite evident.
we already know, drilling of Nash Creek (New Discovery zone) continues,
and should continue until early December or so. He stated that he's
expecting further assays any day now. The company is quite excited
about this zone. The drill continues to hit mineralization in this
brecciated zone in thicknesses up to 30m. As Mike stated, they're
"getting alot of bang for their buck". Unlike a majority of holes that
companies drill where essentially most of the hole is barren host rock,
but must be drilled to access a narrow zone that could be 1/10th (or
considerably less) the length of the hole, SLAM is able to practically
collar in the mineralization and drill short holes to penetrate the
zone "wasting" very little money drilling through a lot of host rock.
Mike stated that they'll continue to drill the New Discovery as long as
they continue to get this "bang for their buck". If the zone peters
out, faulted, etc. or is not returning significant grades, they will
move the drill to infill drill to further add to the indicated
resource. Mike said that core from the New Discovery continues to look
Once the drilling is complete, then they'll
update the resource (currently 6 million tonnes he said) and initiate a
feasibility study. They fully intend on mining the Nash Creek deposit.
As Mike stated, the 2 million tonne high grade resource ITSELF could
profitably be mined. A 1000 tonne per day operation of the high grade
zone in a "truck haul" operation currently would provide $250/tonne or
$250 000 per day over a 6 year mine life. He mentioned that they'd like
to initiate mining in this manner to generate revenue, but continue
exploring and developing other zones in Nash.
study would examine their own milling costs/process. Mike believes that
the economics would be favourable to have their own mill. The study
would also examine the possibility of using a gravity concentrator on
the lower 2-3% grades, making it feasible to mine that portion of the
deposit as well. He stated that mining the deposit would essentially be
only one part of the ongoing Nash Creek program, as they believe there's more potential zones that would warrant ongoing exploration of the property.
another note, there's a crew that will be deployed to Jake Lee any day
now. They'll be performing some recon. work, including sample
collection. For those not familiar with the Jake Lee project, it's a
recently acquired gold project where historic samples from boulders
provided assays of up to 10 ozs. gold per tonne.
As far as the
share price, the company is as puzzled as investors as to why it's so
low (15 million market cap). Mike said they're making a concerted
effort to "get the word out", attending two shows/conferences in the
last two weeks. He assured me to be patient, that the company is solid
And somewhere about that point, I told him he should get back to work!
I guess that's about all for now. Have a good eveni