RE: GBB news! Sample extraction happening soon"Gonna have to move that mill if they're gonna build a super pit though MLEMC...is that anything like rotating a cottage? Cause I know how that is done - maybe I can help!"
And the parking lot will have to go too! First steps first. Yes Granada is potentially a larger pit operation - open pit costs per tonne milled are far more attractive that underground mining.
Rosseau, Granada's neighbour, is an underground operation and the feed stock will have to be trucked to the Granada mill. Underground costs plus trucking means the bulk sample better show better grades than Granada, but I think we've got the right crew on the ground to make that happen.
Doing some quick calculations, in order for GBB to reach a run rate of 20,000 ozs per year, with the existing milling capacity, the feedstock has to average 7.75 grams per tonne. This is far above what Granada has been producing so far, but combined with the 40,000 tonnes from Rosseau, I would imagine that an average of above 7.75 grams per tonne would be attainable.
Now just for fun, lets compare GBB, the Rodney Dangerfield of Canadian producers, with Glencarin (GGG.T), the Rodney Dangerfield of South American prooducers. GGG has a market cap of $147 Million, while GBB has a market cap of $5.3 Million. GGG is scheduled to produce 60,000 ozs. in 2007, while GBB has the potential, with Granada and Rosseau, to produce 20,000 Ozs. per year.
If GBB can get a years production under its belt, producing 20,000 ozs., and starts extending mine life, complete a couple of 43-101s, then what's your bet that GBB's market cap will increase drastically?
The are certainly some differences between GGG and GBB, so a direct comparison cannot be done. GGG has a proven record , while GBB has a great opportunity. There are some other wild cards. GGG is working in South America, while GBB's Rosseau and Granada properties are in the most mining friendly province of one of the most geopolitically secure countries on the planet. There are certainly other difference as well, but in my analysis, the potential of Rosseau and Granada alone, ( excluding some other interesting plays GBB has on slow cook mode), is high. A buck a share would be a lay-up for GBB if it could turn the Rosseau bulk sample into an ongoing operation, combined with an enhanced pit at Granada.
Of course, everyone has an opinion. But now you have mine
