Market Call Minute...Charles Oliver, Senior Portfolio Manager...Sprott Asset Management.
Click on the following: Minute 4:30
https://watch.bnn.ca/#clip728705
He does not hold a position in it...suggested it a "hold".
Charles did mention that his play in the region is Torex Gold (TXG) our neighbour.
Someone from Sprott has been unloading over the last couple of days...Charles did give us a hint...they are staying away from projects with significant capital costs and low grade projects.
One question...what is he doing at Torex?
14,000 Tonnes per day X 30 Million dollars per 1,000 Tonnes...$420,000.00 (estimate)
From Torex NI 43-101 Resource Estimate:
We are very pleased to be within a whisker of our M & I resource target of 5 million ounces of gold at the two known Morelos gold deposits north of the Balsas River. These very positive results will allow us to finalize our plans for the mine and 14,000 tonnes per day mill, and complete a feasibility study by the end of July 2012. In addition, we can now concentrate the majority of our future drilling efforts on exploration targets south and north of the Balsas River in the search for additional gold deposits," said Fred Stanford, President and CEO of Torex.
|
|
| Deposit |
Resource
Category |
Tonnes
(Mt) |
Gold Grade
(g/t) |
Gold Ounces
(000’s) |
Silver Grade
(g/t) |
Silver Ounces
(000’s) |
| El Limon |
Measured |
6.1 |
3.29 |
643 |
4.07 |
795 |
| Indicated |
26.0 |
2.98 |
2,492 |
6.35 |
5,313 |
| Sub Total M&I |
32.1 |
3.04 |
3,135 |
5.92 |
6,108 |
| Guajes |
Measured |
4.3 |
3.11 |
431 |
3.86 |
535 |
| Indicated |
17.4 |
2.25 |
1,258 |
3.11 |
1,736 |
| Sub-total M&I |
21.7 |
2.42 |
1,689 |
3.26 |
2,270 |
|
Total M&I |
53.8 |
2.79 |
4,824 |
4.84 |
8,379 |
| El Limon |
Inferred |
8.3 |
2.0 |
543 |
4.7 |
1,255 |
| Guajes |
Inferred |
2.5 |
1.0 |
77 |
1.7 |
135 |
|
Total Inferred |
10.7 |
2.0 |
620 |
4.0 |
1,390 |
|
The Breccia Zone is most definitely in line with the Torex Deposits when it comes to grade...However, dilution may be an issue moving forward as they move away from that Zone and begin to establish the Open Pit Parameters. I have done a thorough examination of the finding thus far and will post my review sometime during the weekend.
With the capital costs of many low grade projects surpassing estimated projections by a large margin the market is getting nervous about plays like NES...something we must be aware of moving forward....let us watch this one closely.
Digger144
P.S. Torex Gold will be an Open Pit Operation....perhaps for now they are more inclined to support TXG.