Noxopharm Ltd V.NOX

RE:RE:RE:Growing Up

[MrMonk]

From Dale:

Production decisions are complicated and every deposit is different. Until you outline the entire deposit you don’t know how much gold there is or how big a mill to build. If you build one too small and find more gold then you have to revise or expand construction and that can be costly. A feasibility study can un-earth costs that were not anticipated, such as extraction problems, continuity of the deposit, etc, so amount of gold in the deposit is only one of many considerations.
 
The Marban Block deposits (Marban, Kierens and Norlartic) have all produced before, so that is a good sign. These deposits can make money. Initially, it looks like all 3 can be produced from open pits, and that will reduce costs and increase potential profitability. The grade at Marban is higher than what Osisko (now Agnico and Yamana) are producing right across the road – another good sign.
 
We currently have over 2,000,000 ounces outlined – and that would normally be enough to start moving toward production. But all three deposits are open along trend and at depth, so it is pre-mature to be looking at production. If we end up with 3,000,000 or more ounces, that would change the size of mill required. A quick decision might also result in building the mill in the wrong location – right on top of a key part of the deposit for example.
 
NioGold’s strength is its property and people – we have a well respected group of geologists and strong local ties. This has served us well in acquiring key properties from local prospectors. We are explorers with one of the largest land packages in one of the top gold producing regions on earth. We have huge potential for additional discoveries. But production is a different game, and exploration companies do not often become producers. You need different expertise. You will notice we have recently added key management to the company. New President Robert Wares and Directors Sean Roosen and John Burzynski are some of the top mining men in Canada if not the world. They will help gain NioGold the exposure to top mining funds and executives around the world, as well as guide the company towards the proper decision on exploration and eventual production. They are reviewing our properties, drill plans, and developing a corporate strategy that should be complete soon. NioGold’s annual meeting on October 30 will be the start of a new era in the Company’s progression.

-- MM