RE: RE: RE: RE: RE: AS far as Bonanza? Yes, mouserman, I was also comparing the latest results with recent reports of other companies, and that is what made me want to understand things a little better. With your help, and looking at it as "infill" drilling made that clearer.
I still have the utmost faith that Duane is the coordinating force leading a very competent team of Robert Fraser, Clyde Peppin, Hallein Darby and oft-maligned but friendly and tenacious Fiona.
They inherited a "dog's breakfast" from the previous Genco management that probably took more time and effort to fix than they expected. It's like buying a house but on a larger scale; there are always hidden defects of one kind or another that one finds when they move in.
But, in retrospect, I have to admire the Management's foresight to fix the mine first so that it would generate cash! Everything else was subordinated to that. We have had indications that the cleanup and revitalization of the mine has now been substantially completed, and that La Guitarra, which was at break-even point earlier in the year, not only will now pay for itself, but will more importantly provide the cash needed for future exploration.
That kind of foresight is not so much a matter of mining expertise as it is the ablilty to draw on experience gained in "the development, structure, operations and financing of a number of resource-oriented companies". The very senior ex-Hecla managers, were probably an important part of the policy decided upon back in the early days after the take-over, but I credit Duane with taking that policy (whoever formulated it) and leading his team through what must have been a "hot" summer!
Upgrading, or at least substantiating the resource picture must have been a tempting first step, but they had the wisdom to realize that a profitable mine that produced silver, and thus CASH, was the better way to go.
And so, I think we stand at a pivotal moment in time for Silvermex. This quarter will probably be looked back on as a milestone in the Company's develpment. Having toiled on the defensive for a full year, they are now ready to face their second year with confidence and cash in the till.
If my faith in Duane is well-founded, we will soon see a much more publicly visible and aggressive management, now that "all the parts have been refurbished and put back together". It's time to come out of the closet!
The less than spectacular underground results, in my view, can be seen as a "supply" problem. Nothing serious, although better grades would have been better. There's enough silver and gold ahead of the men at the mine-face to finance the coming resolution of the "reserves" issue.
With the price of silver on its way to higher elevations, and given the many other prospective targets on this large property, a mine producing silver AND cash flow will make everything possible.
By December, we might even be back over 80 cents, and then we could just look back at 2011 as a lost year.
Sunwood