There have been some additional comments on this blog that indicates the earlier calculations by the blogger were incorrect.  Apparently Brent Cook provided the correction.  So the implication that the find is not economic were incorrect:.  Never believe everything you see on the internet, and never base your investment decisions on random comments:


Otto ikn said...

With the need to be fair, some guy called Brent Cook writes in with this:

"At a cutoff grade of 0.5g/t the average oxide grade is 1.64g/t. At 90% recovery leaves you ~1.5g/t.
At todays gold price GMV recovered comes to ~$77/t. Less $25/t mining leaves say $52/t revenue to cover capes etc. Not $5/t"

There were a couple of other observations, but it was signed off with "Bottom line tho, you made a mistake in your math."

Well sensu stricto he's right, but i was trying to get a handle on the bottom of the economics, not the grade average. This is the kind of hole that brief posting on a pissant blog leaves in an argument and i'm all for getting a smackdown or four.

7:36 PM

Anonymous said...

Cut off 0.5 gram, grade of resource 1.5 grams. Greater than 50 dollar (1 gram) profit. Kaminak looks great.

10:20 PM

Otto ikn said...

Care to explain why the market doesn't agree with you then, anon?

10:27 PM

Anonymous said...

Gold stocks are not in favour right now. In fact, many funds are reducing their gold exposure. But good oxide (very rare) gold deposits like Kaminak's, in my opinion, will be taken out eventually. Insiders invested 1 million at 1.34 recently. They know what a potential mine looks like. (not investment advice)

10:41 PM

Otto ikn said...

Ok, that's fair opinion.

Any reason why they priced the cut-off at $1,700/oz Au (and we'll leave the fact they didn't mention it in the NR to one side)?

10:53 PM

Anonymous said...

Spot price was probably $1700 when their consultants were first writing the resource report a month or two ago. Even with a lower gold price the project could potentially be very robust resource especially if the oxide and transitional mineralization is heap leachable as was the case with Canplats a few years ago which was taken out at 4 dollars but not before dropping from 4 dollars to 1 dollar and back to 4 on the take out. (not investment advice)

11:11 PM