Core Gold DMMIF

progress , taxes

[upmarkets]

Visited  DMM website for mine progress

I noticed the overall report on Zaruma with pictures but it is not dated .
( No pictures of mill  foundations  or  building )
( I wasn't aware of it in early Nov  but it likely was there when  I posted here on Nov 11).

It feels like it is about  Oct  15th and that 2 reclaim ponds were complete
Ore was being drilled, mined and stockpiled and that the 20Ton pilot plant was completed
Ball mill and crusher on site ( which was  August)
Yet was just a comment that main mill was  progressing.
Now we need status of  power supply , mill building up, equipment set,   M  E & I installed/connected)
Commissioning in April?

The page said  production targetted  for Q 2  which is April and is what I suggested at the end of Nov.

You can bet it takes at least 3 weeks to commission and
another 4-6 weeks to approach 75% production ( and any mill modifications )
So that is into June

I don't know where you guys keep coming up with Jan Feb March production.

We have not had a construction progress report yet for the mill
much less start of commissioning

Only positive  is when they do necessarily contract to sell to the govt .
I bet they would stockpile some gold bars as the price of gold climbs  into the summer.
( ie with fed % cuts and $US falling another 10 to 12% )
Then contract ( lock in  ) the price.
IF  the output from DMM is required to be sold to the govt for resale
( althought the recent stock hit would suggest that )
And that price wil liely just be for initial production  
I expect increased production in 6 mo could be  set at a higher ( current) price.
You can see how flaky the whole windfall proposal actually is.
At  least   what has  been released / published .
If the draft tax item was complete  wouldn't we see another news item
( yet see DETAIL below)

clarifications.
If you read the proposal you would see the comment that the price  escalates
with the  USA  cpi so you will not erode profit on operational costs.

Second  the whole proposal  is  by the  Federal income tax  dept!.
It is not yet federal  govt  or  mining  dept  policy and
indications are that it did not originate there.

I read that meetings are  to start with the Federal mining dept  and  CTQ  ARU  concerning
mining and royalty policy  ( although DMM will have the highest margins and is affected the most)

I hink there is strong chance that the feds will override/adjust the tax dept proposal.
I expect they will select rates and mechanisms very similar to most  moderate
jurisdictions of the world

Also recent comments on  yearly acreage fees:
I think for years they were too low so a compnay could sit and not spend exploration money.
Then they raised them ( and re-auctioned leases) to encourage active exporation.
The could raise them again  but I think that is minor ( no pun ) cost ( or is canceled? )
once you have a producing mine

Having worked in S America I can comment that:

Latin Politicians  are unsophisticated yet know that embracing  embedded corruption
is the likely method to build a retirement fund

Different depts always fight  and don't know how to set policy.
Leaders of different depts  jockey for position by appealing to the masses with
idiot leftist comments

Likely a mid-level employee is trying to shake up the stock prices
with idiot pronouncements

The news reports often have  poor or incomplete  translation.

The average reporter ( in all countries)  usually don't know what they are talking about
as to DETAILS ( when it comes to  tech  and finance ).
They are trying to produce some pap each day to fill a newspaper.

Business News  ---What do you really want to know:
Is some mortagage holder in Arkansas losing his house due to crooks in the US mortgage business
OR  
What was the latest shell/ jr  company that F Guistra , R Rule , L Lundin or S Inwentash
invested in ? ( which you will never hear )

I expect we could very likely get a good Zaruma progress report released during the
Vancouver gold show on Jan 21
Plus seasonal drill results
And maybe more comments/clarifications from the mining minister and Federal leader on the meetings  say Feb 1

Agree this should move up  to 12 to 16 range   in next 5 months and then higher
( and depends on  tax rulings)

Good investing
U