GREY:GRFJF - Post by User
Comment by
keizaigakushaon Dec 20, 2008 10:58am
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Post# 15659393
RE: RE: Question for the board
RE: RE: Question for the boardI htink some of WGI's resource #'s are misleading. They actually have around 2.4 million ounces of oxide resources which they intend to mine. The remaining resources are sulphide based which cannot be used in the heap leaching process WGI currently has in place for oxide material. In order to mine the sulphide contained gold, they would need to install a mill of sometype that would no doubt be quite an expense.
Once you have the oxide ounces, remember the recovery rate for the leaching process is 67%, so 2.8 million ounces really cranks down to 1.9 million ounces.
I agree this company is undervalued and I am long myself, but I find it misleading for management to quote such aggregate gold ounce #'s when the amount that will actually be mined is far smaller. Heck, look at Allied Nevada, they have over 7 million ounces of sulphide resource, but they aren't planning on mining it but it is in their total ounce calcs.