Fabled Silver Gold Corp T.FCO

RE: Rip Van Winkel vs This Board???

[pcnisbet]

Norm If FCO does a deal on Milagro with a major, its not likely to be placed rapidly inot production. Heck buddy, no major is going to start a program there until the project has been drilled. What we know about Milagro stems completely from the Santa Maria Mine site and its shaft and adit. We know from the work that I and Blas did on the hill that there is some strike and that mineralization goes to a minimum depth of 75 meters. Strike indicated by outcrop pattern was maybe a kilometer, but for sure is at least 400 contineous meters. The outcrop across the valley to the south may be another body or a continuation of the Santa Maria mineralization, but that has yet to be fully established. Width within the mine is about 3.2 meters and grade averages 3 kilos of silver with 12% combined lead and zinc. The salinity of the fluid inclusions and their temperature indicate an origin similar to Santa Eulalia. Paragenetic sequence is similar as well. One hell of a lot of thin sections were cut and we do know the minerology of the deposit pretty well. There still needs to be engineering studies conducted and other then the blocked 40,000 tons in the mine iteself, there is no reserve base. So if a company comes in and carves a deal, they will no doubt drill the property. That will take at least a couple of years when you add in that and engineering. A Eulalia type is over a million tons Norm. The big ones of the type are ten plus million tons of high grade. The big thing is that for the past four years nothing has happened to advance the property. It needs to be drilled and the reserves defined, but FCO has not had the budget outside of Blackbird to get that job done. Then you have the Los Cocos play in Eastern Guanajuato. Nothing is happening on that block either. There is a gold skarn on that block that is hotter then most gold plays in Mexico. The Mina de Jesus could be a million plus ounce gold property, but since its all old workings data and has never been drilled, how do you sell the project? That does not count the old El Roblar on the Northeastern end of the block they have on the project, with mines dating back to before the the Otami Indians mining it. Key is all the targets are drill ready, but where is the drilling budget? Its all going to permit the cobalt program Norm. They have to stay focused. The best plan to jump start those project is to see them moved to companies who can spend the money needed now so that if in the next couple of years you do see a big jump in PM prices, the projects can be placed into porduction. You can not do that without first drilling out the reserve bases on either Mexican project. BTW, have you ever gone up and looked at the silver that occurs up in Burns Gulch? There is a pretty interesting epithermal silver deposit in Challis Volcanics up there that has been open since Goldright dropped it in 1989. Might be interesting hunting for you if you do get up to North Fork anytime soon.