RE: whats upStokpiker from your posting:
I went back and checked the AME web page you referenced, it seems you take exception to the AME comment 'The Afton area is host to one of the most prolific mine camps in British Columbia. Production can be traced back over one-hundred years'
Followed by:
I personally like a bit of hype (promotion), I think having 5 open pits and as you pointed out, hundreds of historical exploration drill holes is an obvious indication that there might be something in 'them thar hills'
Try the logic of reality on for size, do the math on the facts.
So far + - 30 million tons have been mined from the afton camp,
in an 18 year time frame, 1979 to 1997, not the last 100 years.
24.4 milion @ aprox 1% from the afton pit, from1979 to 86 = 8 years.
this ore was very profitable.
thruput of the milling complex was optimized @ 8-9,000 tons per day.
after 3 years the profit returned the capital investment provided for the infrastructure.
{afton mines stock traded in these years 1980 – 81 between $45.00 & $55.00 a share}.
that leaves aprox. 6 million tons from the 4 other pits, for the remaining total production of 30 million tons.
This production, 6 m/t, included ore from the pothook pit also, that pit is on ngd ground.
So lets round out the production from ame controlled areas @ 5 m/t, ok?
Now jump back to 1986 the year teck stopped mining the afton pit.
Infrastructure {mine, mill, tailings pond, water system, surface rights, haul roads, permits, rolling stock, loaders, repair facility, smelter, ect.}, all in place and paid for,
+ an excellent profit for the previous 8 years of operation.
Not to hard to imagine that afton mining could make money mining these other pits?
Lets see now, 1987 till 1997 when teck shut down the mining, milling.
that’s ten years right?
So with everything paid for {infrastructure} only 5 m/t of low grade .5% cu were mined from 3 pits in ten years.
Teck was is such a hurry to unload the place they let the afton & any other areas they controlled that they did not have an underlying obligation agreement with venders,
go back to the government.
Sure doesn’t sound like teck made a lot in the last 10 years, even with all of the above noted advantages.
Logically looking at reality one can assume that the afton ore must be better mining – milling than any of the others.
So to recap;
afton pit paid for all infrastructure, mined highest volumes, tonnage and grade in the shortest period 8 years.
All the other pits [ime controlled] = lowest volume tonnage and grade over a longer period 10 years, culminating in the closure and shedding of assets.
Which of these two scenarios looks best for investors?
Thnx. good luck bt.