TSXV:SLX.P - Post by User
Post by
Lippy2on Apr 07, 2011 9:38am
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Post# 18398072
Moving forward
Moving forwardOn page 28 of the AIF dated March 31, 2011
Silvermex has developed a mine plan and operating model for La Guitarra Mine that will allow it to operate profitably with minimal capital investment for the foreseeable future using the existing mill. An alternative plan has been developed which, with a moderate capital investment will allow La Guitarra Mine to develop new high grade areas and potentially generate significant positive cash flow based on current metal prices. Either of these operating plans are viewed as viable alternatives to a major mine expansion at this time if project financing is not available on terms acceptable to the Company.
Silvermex does not plan any major exploration during 2011, as current identified underground reserves are sufficient to operate the existing mill at capacity. When the Company elects to move ahead with mine expansion, it may initiate new exploration programs at La Guitarra and elsewhere in the Temascaltepec Mining District.
Yet they state this on page 5 in the MD&A from the same date
La Guitarra Exploration
The new resource model, combined with a comprehensive program of surface mapping and sampling will assist in prioritizing our drill targets for 2011. Approximately 7,500m of surface drilling and 7,500m of underground drilling is planned for this year. Management is confident that this exploration program will lead to the development of near-term ore supply and delineate potential new ore bodies and resources.
Mine expansion?