TSX:LSG.DB - Post by User
Comment by
digger144on Jul 13, 2011 8:30pm
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Post# 18828909
RE: TRR VS LSG??
RE: TRR VS LSG??
Hey Dogwag...
What I believe you missed about Trelawney most likely comes down to two main factors:
The Cote Lake Deposit is a Porphyry Style Desposit...they are not chasing a Vein System. This results in a consistent distribution of gold and most impressive Strip Ratio of about 2 to1. In otherwords for every tonne of ore they will only have to remove two tonnes of waste..Excellent!
Also, this system is massive...they have only scratched the surface...10 million ounces is not out of the question!
Another important point and the market is beginning to recognize this is what a Mining Operation will look like. Okay...it is very important to define the ounces to establish a Mine Life...but...how many ounces can you produce on a yearly basis? The answer to this is: 50,000 tonnes per day....over 500,000 ounces per year!
This is what I believe you have missed with Lake Shore Gold...what was the final blow for me was the most disappointing Mill through-put in the first quarter of 1,650 tonnes per day. The market felt the same as myself and the share price acted accordingly. They must bring up their Mill capacity and be able to maintain it on an ongoing basis. The next expansion at Bell Creek to 3,000 tonnes per day should rectify the problem, but this will take a lot of time. The market will need to see two quarters of through-put at 3,000 tonnes per day to believe Management...mid 2012 would probably be a good estimate...Until then I am out!
Take Care...All the Best!
Digger144
P.S. Geoffs13...my friend...I wish you were with me at TRR...you and many others!
I tried my best back in March 2010....and again in May, 2011.