gold about 50 bucks per gram 4 gram/ton gold is worth about $200 per ton before any costs...not a lot of profit for a new mine
5 gram/ton gold is worth about $250 per ton...hardly worth bragging about.
LSG need to bring up the long trem mill tonnage for this low grade mine. Another opportunity is to explore the properties for higher grades. A third opportunity is to ride it out for potential higher gold demand and prices.
It appears Tony is guideing our company back into the black.We blogged LSG as a take over target several times on this blog site. With the current low grade production I really don't see any high grade mine wanting a low grade low tonnage producer. Why would they risk all the money for a take over?Seems like way too much work for the low return. Perhaps there is a reason why the production grade is being held down??
I was pretty excited when we were at 200 million shares. Now at 430 million the pie is just too small. Over time ...say plus 5 years maybe I will see some of my $4 share money returned. I don't have the funds for a complete double down purchase. Anyone getting in now will have a big smile. Good luck to you folks. I would like to hear some other more optimstic opinions.
Making large stockpiles won't help much as the mill can only handle 3000 tpd. Higher grades with our small mill is the best way to go. High grade Timmins West to finance a large mill to handle all low grade mines and the Fenn Gibb pit.