GREY:LACHF - Post by User
Comment by
RedHorizonon Mar 26, 2009 9:01pm
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Post# 15875263
RE: RE: 3 days to the report...
RE: RE: 3 days to the report...RY:
Yes, I'm still around, just waiting for the report like everyone else.. There is actually some new info I may as well post on.
I don't think that people fully realize the value of the VMS system at Hassai. Geologically the VMS at Hassai is very similar to Nevsun's Bisha deposit. LMA's Hassai VMS, however, has higher grades of both gold and copper, at least so far, and looks like it might be larger. The great thing about this is that it is a huge "company maker" sized project which LMA believes can be in production in 2013, if they continue to get good drill results and other geological studies which support their existing beliefs.
With 1.5-2g/ton gold and 1-2% copper per ton we have a deposit where the copper should fully pay all operating costs and LMA will get the gold at a zero cash cost or close to it. Of course it depends on the copper price at the time, but the bottom line is that greater than 1% copper would be a high grade copper deposit by itself. Now LMA doesn't know exactly how large it is yet and they don't know how many tonnes per year they would mine. However, they say it looks like a minimum of 20 million tonnes. So if we had a 10 year mine life then we mine 2 million tonnes per year which at median grades would imply about 96,000 ounces of gold and 66 million pounds of copper. That's about $200 million is revenue at today's prices. What are their costs? I don't know yet, they don't know what mining method they would use yet. It is also possible that the deposit may change at depth or in different places which is what Nevsun is finding with theirs. Nevsun's Bisha has a lot of zinc in certain places.
Nevsun has a market cap of almost $200 million just for Bisha. What is LMA's market cap? $65 million? And we also have 100,000 ounces of current gold production growing at 20% per year. LMA isn't just a cheap gold producer, it's an undervalued gold producer with impressive and fairly clear production growth. They also have 30 exploration projects worldwide.