TSX:LSG.DB - Post by User
Post by
shawkon Aug 13, 2012 10:34pm
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Post# 20213427
Where Has All the Gold Gone?
Where Has All the Gold Gone?https://www.lsgold.com/Investor-Centre/Press-Releases/Press-Release-Details/2009/-Lake-Shore-Gold-Releases-Updated-National-Instrument-43-101-Report-for-Timmins-Mine/default.aspx
In 2009 we had a resource estimate of 3.4 million tonnes grading 7.52 g/t, a very respectable grade.The head grade at the mill however has never exceeded 3.5 g/t, so where has over half the gold gone? In addition since that time we have seen numerous reports of even higher grade intercepts that are not included in the report.
So where is the gold? Either the resource estimate was wrong, there has been unexpected ore dilution ( which still means the resource estimate was wrong) or LSG has only been mining the lowest grade zones, which means that there must be a pile of 14+ g/t material to be processed at the Timmins Mine to validate the resource estimate.
Just think! If we were running 7.5 g/t material as they promised, we'd have more than double the cash flow and our costs would be significantly lower and the share price..... well it wouldn't be trying to keep its head above a lousy loonie.
Shawk