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Encore Renaissance Resources Corp V.EZ



TSXV:EZ - Post by User

Post by JennyB2on Sep 27, 2009 5:11pm
299 Views
Post# 16342358

To: Investisseur101

To: Investisseur101
To answer your question of why I think there will not be a profit from the "Bulk Sample" from teh Bonaparte Mine....

Hauling "gold mineralized rock" the 6+ hours from Kamloops to Republic,Washington USA, is very expensive. I have not checked with any truckingcompanies, but I think it could be a profit-prohibitive cost in and of itself.

Further, the Press Release concerning the testing of the Bonaparte Lakerock reported the use of cyanide solutions to recover the gold from theBonaparte Gold Mine "gold mineralized rocks". The press Release'indicates' as did the video, that the gold in the Bonaparte lake veinmaterial is 'coarse' gold. Coarse gold is generally not recoverablefrom a cyanide circuit, especially one such as a Carbon-in-Leachcircuit (CIL) where the ore is crushed and then ground to a fine powder.

Coarse gold 'ore' does not crush or grind well as the gold tends tosmear and gather upon the crushing and grinding equipment, never evenmaking it to the CIL tanks.

Additionally, the Republic Mill/Smelter is not likely to run a separatemill run for a 1000 ton batch of "mineralized rock". Whatever materialSL-EZ delivers to Republic will most likely be "co-mingled" or blendedwith gold ores already being processed through the plant. A runningaverage of the SL-EZ "mineralized rock" including deductions for costs,will reflect the inclusion into the general mill feed being run.

The only way SL-EZ rocks will be run separately is if the material sentto Republic is not as described, but rather a test leach or a testrecovery experiment.

Either way, the costs of such a procedure are very high and mills thatprocess ores from other mines always charge a very high fee for doingso. PLUS, the sulfides in the vein material cause the cyanideconsumption of any cyanide related test of milling to increase, whichincreases the cost.

Further, any sulfide minerals in the ore have to be treated in an EPAdesignated manner, again increasing the cost.  All those costs add up.

Finally, the most important fact, in my humble opinion, is that themanagement at SL-EZ are NOT calling the material sent to Republic"ORE". Ore is a legally defined term and they are not using it as Iguess they are aware that the material shipped does not meet the legalrequirements or definition of "Ore". They do not want to get caughtcalling "mineralized rock" ore, if it is not.

The basic requirement of an "Ore" is that you are able to get a checkback from the smelter for your profits after ALL of the costs ofproducing a final product are deducted.

If SL-EZ chooses to not call their material "Ore" then I will taketheir word for it, and that means they are not expecting to make anymoney off of it...no profit = no ore.
, no ore = no profit.

I am simply using the terms as supplied by SL-EZ management and their use of terms state they have no "Ore".
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