OTCPK:MEAOD - Post by User
Comment by
art27on Jan 13, 2009 4:14am
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Post# 15700444
RE: RE: Why are we down to $0.38 ? Seems Simple
RE: RE: Why are we down to $0.38 ? Seems SimpleMontyhigh,
As to CSG.V I have my two concerns:
1. The El Sastre mine will be depleted in 2009. Management says they will receive $5mil in 2009
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Production(1,000 tpd)= 14,000 -16,000 oz/yr(avg L-O-M)
3 year mine life(depleted by Y-E 2009)
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Expected to provide $5million in cash-flow through 2009 (assuming US$800/oz gold)2. El Castillo. They plan to ramp up production to 50k oz that is very nice. HOWEVER, there is no power lines and to generate the power they will have to use Diesel to run the show.
Water is pumped from wells, and electricity is produced by small generators on-site, and used to power a crusher and pumps in the heap-leach circuitThe same goes for their La Fortuna (which by the way has better grades than Metanor)
https://www.castlegoldcorp.com/i/pdf/CastleGold-Sep_15-08.pdf
With crude oil cheap right now it may seem ok but what if oil is back at over $100 again ? How do you see the costs of production affected ?
Art27