RE: Value of The Jerritt Canyon Operation All good, every part of it. I really like the drilling results in the Mahala Basin, right between Steer/SSX and Smith. If you look at a map of the area in toto, it's plain that there has to be ore, good ore ion the Basin. The latest drill results confirm that. This is much bigger than setting up a diamond drill in the middle of nowhere and finding a couple of good holes -- no, this is right smack dab in thte middle of a longtime proven gold-bearing zone with all the processing facilities possibly needed right there, with all the permits and agreements in place beforehand.
Yes, some of the area has been mined for 30 years -- so what? They took the easy-to-access high grade ore that was feasible at $400 per ounce at the time, stockpiling what they couldn't mill. There's lots left, not counting the stockpiles. The whole region reminds me of Northern Ontario -- the Dexter Porcupine Fault -- that extends from Timmins to Kirkland Lake to Rouyn/Val D'or (Quebec). Gotta be 60 mines that have operated through that faultline, extracting MILLIONS of ounces. The Dome is still going, since 1911, keep finding stuff , going wider and deeper. Several new mines have opened in that area in the last couple years. On a map, it looks a lot like the ELKO, Nevada geology: just play connect the dots.
The elephant in the room is manpower. Yes, YNG under old management messed up bigtime, missing payrolls, not paying local suppliers, etc... There are only so many good hardrock miners available, particularly in a booming area like Elko. The bigger outfits -- Barrick, Newmount, etc - have snapped up the majority by offering security and benefits, compared to the old YNG that had previous problems. YNG had to hire U/G contractors, some of whom weren't the best. They kicked one U/G contractor company out not long ago for poor production. YNG got sued but won.
When you read in their NR about their desire to mine IN-HOUSE, that means that they want to re-establish their own workforce. If you want good, competent and confident men, you have to pay, you have to offer security, such that you can lure them from the other companies. Good U/G miners don't grow on trees.
A takeover/JV with one of the big locals would allow men to transfer to the YNG workings without losing seniority or security -- problem solved. The ground in the area is messy to work with, involving much shotcrete and screening to stay safe, but this is a problem universal to the area. It will take time to attract the best, but word travels fast. The boys are starting to drift back, pardon the "in-house" pun.
Barrick alone has over 30 stockpiles of sulphide ore, Newmount even more-- Merger/JV problem solved without political hassles, African nationalization so they can partner up with China, etc....
Things are looking good. Right now, the turnaround is physically complete, in that the machinery, mill, drilling, planning and portal blasting are done. The next stage of the turnaound is psychological, believing that it has actually occurred, not only for the shareholders but more importantly, for the local populace and workforce. They're the ones who have the real power in this situation. But guess what? They want to make money too, and a coule of good quarters will go a long way. We just need to hang on until the turnaround is totally complete. Patience, boys.