TF operationsUnderground mining in Mexico can also be challenging. The veins aregenerally very narrow. They are notorious for pinching and swelling inboth width and grade. Feeding a mill from a long narrow undergroundvein can be difficult and get very expensive. Building and operating amill also adds significantly to the cap-ex of a project. Raising thecapital to develop an underground deposit may be difficult for a juniorcompany. I generally prefer to see juniors working on open pit projectsthat can be heap leached and developed at a lower cost, withoutsignificant dilution. I am not a geologist or a mining engineer, but Itravel with a pretty elite bunch through Due Diligence Tours. We havesome pretty frank discussions about the projects. The main issue isalways whether the project is developable. Ownership is also animportant issue. I try to evaluate whether the company is capable offinancing and developing the project on their own or if they'll needsomeone else to step in and develop the project through a sale or jointventure. Ownership of the project is very important. I like to see 100%ownership.
https://www.vantagewire.com/articles/showarticle/600
John,
After reading the preceding paragraph, how is TF working out for Fresnillo? - will we soon have a update on TF operations?
Also from the above paragraph (
They are notorious for pinching and swelling inboth width and grade.), would TF be cost effective in this type of mining environment?
TIA