RE: pcnisbetAt least from their new VP Exploration's remarks he intends to follow up on the few drill holes down south of the river. Its inbteresting to me that the best grades and the highest probability of success were not on the old mine site, but the old mine site was drilled out by the UN and rather then follow up the ten holes we had on Zapotal III, they simply wetn with the UN data on Vueltas del Rio. VDR is low grade, clay rich and recovery from the existing data showed that copper interfernece was potential and that aglomeration was required. Higher gold prices when GEO bought out Brady and Milagro lead them to figure that they could complete exploration later and instead push immediately into production on the Vueltas del Rio. They have now doen a few holes themselves south of the river, but the rest of the concession has yet to be adequately explored. No follow up has been done on the stream sediment sampling program that I and Roberto Dala carried out in 1988, just as one example. Some of the pan concentrates from that program were mind blowing in the coarse gold recovered. We also got some great kicks leading up to a massive iron gossan zone on Loma Del Mico in the far western part of the concession.
If they channel some of the funds they have into actively exploring the property, then the $0.13 will end up being a cheap price. I stopped posting here when the mad rush to look for low grade paladium kicked in. One heck of a lot of energy and dollars went into that play and not into developing the obvious target they owned part and parcel. I can remember the upset of the old Brew Crew when the hype was rolling on this board. Where are the Pd hypesters now?
So their operating property got short changed and the outside exploration has been on hold till now. The Zapotal will still end up pulling them through it.
Play with this as a number set. Load the pads with half current ore and half Zapotal III ore. Figure mine dilution and mine recovery and cut the grade down to 0.15 opt for the zap three ore, you still end up with 0.11 opt Au being loaded rather then 0.06. In effect, you double the production for the same cost to do the muck (I am of not counting here that you have to put a Bailey Bridge across the Chamelcon River and build a road to the Zap III and will have trucking costs to the mine, since those are acutally pretty minor overall expenses.). You can also save on aglomeration on the ore since you have a ore thats calcereous and not clay rich being mixed into the clay rich volcanic low grade ores. That would reduce over all costs and increase total production, possibly making GEO a plus 100,000 ounce low cost producer and later giving the company room for expansion. If GEO was making $15 million USF net a year what is the price per share?
And in the interest of plain true and full disclosure, why do I care? I don't own a share. I do have 1% of that net coming to me. You guys do not make money, I do not make money. I want to make money on the mine, lots of freaking money. You make $1,000,000 net and I make $10,000. Damn I like that number. You make more like 15 times that, I can sit around and not beat on rocks for a living any more. I 'really' like that.