RE: Post #30939785 what a misleading crock After reading this post i was curious to find out more about the mine site and i did my own DD lots of phone calls ...and .this is the way i see it .
1) The writer is correct in saying the mill is run down and the fact that vandalism and wear have taken their toll. The costs associated with putting up new buildings for a new mining operation would be a small part of overall cap-ex requirements. Cosmetically speaking, anyone visiting the site would see a worn and decrepit mill site. However the reference to 30% of the mill infrastructure is correct, and it’s not a crock, although there would be some minor shoring that would be required for a new mill. The existing mill foundation is worth millions and to build a new one from scratch would cost several million dollars. The writer is not aware of the dynamics and costs associated with engineering and constructing a foundation of this nature in a mountainous area, never mind the permitting headaches, costs and hurdles associated with constructing this kind of foundation. Be assured there is significant value, even though it does appear as just a slab of concrete.
2) The Course Ore Bin (the building referred to as all shot up) is made of structural steel. The metal cladding is all shot up but this is a cosmetic issue. The structure itself is made of structural steel and engineers have confirmed it is sound and can be used again. The rest of the buildings were torn down several years ago for safety reasons but the Ore Bin is still in good condition structurally.
3) Engineering backup also confirms the (surface rusted) the crushing mills still on site can easily be re-commissioned. New crushing mills capable of handling 1500 TPD would also cost several million to replace and there is a two order lead time to get new ones. The estimate to re-commission them is approx. $500,000.
4) Not sure what the reference is on roads? The roads are maintained by two logging companies who have been logging the area for decades. There is substantial road infrastructure and the cost associated with building the existing roads would also be in the millions and require a new permitting process. There has been no economic reason to put the main road up to the mill and tailings back in grade A condition or for year round access and use, but sections of the road that do need work and ongoing maintenance will be done as activity increases. The costs associated with fixing / maintaining roads are very minor in the scheme of things and will not deter progress in any way, shape or form.
5) The lowest level of the mine (slightly below the 800 level) was constructed for an underground crusher, which is still in place but under water. The crusher we are told may still be salvaged? Water flowing out from the 800 level is marginal at worst and would not in any way affect a new mining operation, if underground mining does occur. Furthermore the 10 kilometers of underground workings are in unbelievable condition, and even after 30 years there are no roof bolts. The site and underground workings are inspected every year, along with all other infrastructure, so the Company is in a unique position to make claims and will stand by its claims. Ventilation throughout the underground system is also among the best anywhere. All of the claims made by NCGC are based on third party engineers who visit and survey annually, including engineers from a major underground mining company who surveyed the mine recently with safety personnel and confirmed everything the Company is representing.
6) The writer is not aware of the Company’s business plan or developments ongoing that will shed light on mining options and the economics associated with reopening the mine. I can certainly understand the comments about the run down nature of the site (because I have been there several times) but rest assured there is substantial value to the site as it sits today. A new mill will cost x number of millions and the existing infrastructures will play a large role in reducing the cost of reopening the Carolin. Perhaps the reference could be made more clear but the 30% number is a true reflection of the value as things sit today.