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Kirkland Lake Discoveries Corp V.KLDC

Alternate Symbol(s):  KLKLF

Kirkland Lake Discoveries Corp. is a Canada-based mineral exploration company engaged in the acquisition, exploration and evaluation of resource properties. It has a prospective land package in the Kirkland Lake Gold Camp in Ontario, Canada. The properties are hosted in the Abitibi Greenstone Belt. Its properties assembled include the Lucky Strike Property, Arnold Property, KL Central (KLC), Goodfish-Kirana and the optioned KL West (KLW) Properties. Its land position comprises approximately 38,000 hectares (ha), over 1,338 claims, and 29 patented claims. The Arnold Property comprises 28 claims covering a total area of 1,225 ha. The Lucky Strike Project is located immediately to the east of the Company’s Goodfish-Kirana Project, in Kirkland Lake, Ontario, and consists of 644 unpatented mining claims covering approximately 11,506 ha (116 square kilometers). The KLW land package comprises 107 mining claims. The KLC land package comprises eight mining claims for an aggregate of 115 claims.


TSXV:KLDC - Post by User

Post by Nergyon Mar 01, 2011 1:50pm
454 Views
Post# 18213304

MD&A

MD&A

MD&A is up on Sedar, the company is cash strapped, but are finally moving forward the way I would like them to do.

 

 

Selected parts from MD&A:

 

In September 2010, the Company retained DICOMI (Diseño, Construccion y Mantenimiento

Industrial) of Torreon, Mexico to conduct metallurgical tests on mineralized samples taken from

historic underground workings of the Tres Marias mine. The Company submitted two samples of

20 kilograms each: one of sulphides and the other oxides. The general scope of work was to

establish ore benefication characteristics for the sulphides and oxides with emphasis on

germanium, zinc and lead. DICOMI delivered a technical report to the Company in November

2010 and subsequently delivered a supplemental report addressing the recovery of germanium

from the ore.

Preliminary findings indicate that favourable recoveries of germanium, zinc and lead may be

obtained for both sulphides and oxides. DICOMI undertook analysis of five mesh sizes (-60

+100; 100 + 150; 150 + 200; -200 + 250; and -250) leading to the following conclusions:

Sulphides

Grinding tests show that the mineralization, marmatitic sphalerite, may be easily milled

due to the soft and friable nature of the ore.

 Experiments using the flotation method demonstrate that a zinc concentrate may be

obtained with projected recoveries in the order of 80 to 90%.

Micro probe tests show that the germanium, 15 to 30 micrometres, is encapsulated

within the sphalerite. It is expected that the germanium would concentrate in a ratio of

approximately 2.5:1. Further tests are currently in progress to measure the distribution

of germanium values in the different size fractions from the head sample to the

concentrate.

Oxides

Germanium values in the oxides are erratic compared to the sulphides. The principal

zinc mineral is smithsonite, a carbonate of zinc.

 Grinding tests indicate 90% liberation of zinc to the size fraction of -200 + 250 mesh.

Proposed options to process this material include acid leaching with electrolysis or

reduction using an oven.

Germanium

A zinc concentrate was produced from the sulphide sample taken from the optimum

grind of -200 to +250 mesh (Tyler) with values:

- 2 ppm Ag, 5.17 % Pb, 18 ppm Cu, 56.70 % Zn, 9.3 % Fe, 720 ppm Ge

The resulting value of 720 ppm Ge associated with 56.70% Zn in the concentrate, which

demonstrates that the germanium will go into the zinc concentrate using the flotation

method. The approximate order of concentration from the head value is expected to be

2.5:1.

Cu6FeGeS8 contained within the concentrate; 45% is free and 55% encapsulated within

the sphalerite. In theory, this may lead to the possibility of producing a partial

germanium concentrate by mechanical means.

In December 2010, three technical representatives from DICOMI visited the Tres Marias Mine.

They will prepare proposals to the Company: (1) addressing cost estimates for mine

rehabilitation and conceptual operating costs; and (2) defining a metallurgical balance with a

view to plant design; one each for sulphides and oxides, realizing the limited mineralization that

has been defined at the Tres Marias property. The Company will need to seek input from

potential customers to complete its feasibility assessment.

not NI 43-101 compliant ?? the Company is progressing to determine the feasibility of conducting a bulk

sampling exercise. In the case of the sulphides, the aim would be to produce a germanium-zinc

concentrate using a ball mill and bank of flotation cells. Options to process the oxides include

experimentation using submerged combustion melter technology

 

The Company has a history of losses. While the Company had current assets in excess of

current liabilities in the amount of $60,000 at December 31, 2010, its ability to continue as a

going concern is dependent upon the discovery of economically recoverable mineral reserves,

Company to obtain necessary financing to complete their development, and future profitable

production or proceeds from the sale of the property. The significant factors that affect the

liquidity over the next few months are:

The Company began to evaluate the feasibility of limited-scale production at its Tres

Marias property. Such production would require that the Company purchase equipment,

increase its investment in non-cash working capital and expand the scope of its

operations, increasing expenses.

The Company plans to bring certain of its MAC claims to lease, which will require

payment of fees and a survey of the property in the next year at an estimated aggregate

cost of $100,000.

have agreed to forgo payment of fees until the Company is on a more secure financial

footing.

Other factors affecting liquidity include

The Company intends to dispose of its investment in Andromeda. The timing and

quantum of any realization are unknown at this time.

The Company is owed US$100,000 (approximately $104,000) plus accrued interest by

Pacific Copper Corp. which debt is secured by a claim over certain of Pacific Copper

would not fund the full amounts contemplated in the War Eagle Note, funding shortfall of

US$55,000. Pacific Copper has notified War Eagle that it considers this failure to fully

fund the War Eagle Note to be a breach, has denied the security interest, and has

assertion that the Company had an obligation to fund a further US$55,000 is incorrect

and believes that its security interest is still effective. The Company believes that it will

ultimately collect the amount due, but has fully provided for the outstanding balance of

the promissory note and accrued interest. The Company has received an offer of

settlement of this debt.

?? The Company???? Mexican subsidiary, Minera Aguila, held a Mexican property that has

been abandoned. The Company has been advised that Minera Aguila has a potential

liability dating from many years ago for unpaid surface area taxes on various lapsed and

dropped claims. The Company has not received any formal notification of liability and

believes that these taxes will not be paid. No liability has been recorded in its financial

For the Nine Months Ended December 31, 2010


 

At the date of this MD&A, the Company has cash of $91,000 which at the current rate of

expenditure will last until March 2011.

view to disposing of certain assets that are better held by someone else and joint venturing on other assets

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