RE: RE: RE: RE: Pilot Boy Your quote of "The mineralization is located in carbonaceous siltstone at the nose of the fold and as such essentially abuts the weak decalcified sandstone which forms the hanging wall of the mine. This presents significant risk of:" is only part of the story though. All mine plans have many such problems to deal with the real question is can the mine engineers, geotechnical, structural etc., come up with a viable plan using available technology. Have you reviewed all the mine plan documents? Are you a qualified, and experienced, mine engineer? If not, perusing a technical report adds very little to your knowledge.
In addition, as Canaccord had noted the share price is already reflecting these concerns, if there were no concerns you wouldn't be buying this stock for under $3. This is going to be a mine of fairly low tonnage giving them time to adjust and plan for unforeseen events.
From Canaccord: "The company commented that it remains on track to start initial production early in the second half of 2013 at an initial rate of 250 tonnes per day tpd and continue the ramp up phase throughout the remainder of 2013 to 500 tpd. The current plan envisages two active mining faces for 250 tpd of production, three to five mining faces for 500 tpd of production and six to nine mining faces for 1,000 tpd of production. The company expects to achieve 1,000 tpd of production by the end of the first quarter of 2014. Shares of CSI have been down sharply over the past few weeks as the market focuses on the soft gold market, poor environment for juniors and milestone risks for Serra Pelada."
But it is no shock that a new mine has many concerns and potential problems, if not you could never expect a return above treasury bond rates either.