RE: RE: RE: RE: GOOD NEWS - Buy on Monday if you c Prize #7???? Looks more like a B()()by prize to me....
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Never liked Bellavista even when Glencairn had it. Tinker toy sized mine with very short mine life. Use to be low-grade, but in a world where everyone is calling 1 gpt "high grade", Bellavista is at 1.6 gpt. To run that they'll need to build a Mill, tailings pond and larger ADR plant. I guess if anyone can run it and make a profit, perhaps it is these guys. So maybe they can milk it for a few 10s of Millions to the balance sheet? I dunno. Rather see efforts put into finding more high grade ore at Jabal and getting that into the la LIbertad mill!
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.From Glencairn 2006 Annual report:
Construction of Bellavista Mine began in December 2003 and commercial production commenced in December 2005; accordingly comparisons have not been made in the text below between 2006 and 2005 as they would not be meaningful.
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Gold sold during 2006 totalled 38,830 ounces at a realized price of $595 per ounce for total revenue of $23,115,000. The ounces produced were lower than expected and was attributable to two major factors. In the first two quarters of the fiscal year, the operations experienced a mechanical problem in the secondary crusher which reduced output. Recoveries were thus lower than anticipated. The new mill reached full operation near the end of 2006 and therefore had no impact on 2006 recovery rates. Recoveries are expected to improve in 2007. On September 30, 2006, the Company reviewed and revised its estimates of the recoverable gold ounces from the heap leach pads. The estimated recoverable gold ounces on the heap leach pads had been reduced by 4,642 ounces and have been accounted for on a prospective basis. Leaching samples of the ore in laboratory tests have indicated that, on average, more than 90% of the recoverable gold is recovered within the first 3 months of leaching. The ultimate recovery of gold from the leach pads will not be known until the leaching process is concluded. Based on current mine plans, leaching will end in 2012.
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Costs of sales in 2006 were $12,275,000 and cash operating costs were $316 per ounce.
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Sales at Bellavista during 2005 after commercial production were $1,909,000 from 3,750 ounces of gold at a realized price of $509 per ounce. Cost of sales were $1,316,000 in the same period and cash operating costs were $351 per ounce. In December 2005, the Costa Rican Supreme Court upheld an arbitration award that required the Company to purchase the mineral rights of the Dobles property
adjacent to the mine site at a cost of $944,000. In 2006 the Company recorded an additional $44,000 to cover court costs and other expenses on this case. These amounts were charged to earnings and are included in other expenses as there are no known mineral resources on the Dobles property.
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At December 31, 2006 mineral reserves in Bellavista of 365,500 ounces are expected to provide adequate ore for approximately 5 years of mine production and 6 years of leaching operations.
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