Ruby Creek Resources Inc RBYC

A tale of two mining issues

[cadillacsam]

The first issue is the in situ gold grades. Look at Resolute Mining in Tanzania. The grades that have proved economical are around 1.0%  ( approximately the lowest that they can go to break even) and that  grade is in small concentrated open pit areas. They mine millions of tons per year to  be economical from these open pits. Their current grades are 1.6%. I have a very hard time believing that an alluvial deposit stretched over many miles would have an average of more than .1 to .5 grams per ton in Tanzania, with higher and lower concentrations found at different sites. The hard part would be to find enough  of the higher without mixing it with any lower grade while digging as regular mine operators fall victim to this as well, usually blending low with high and getting an average grade. 

The second issue is recovery and traditional miners may get between 85-95% recovery. I don't believe the process that is being used for alluvial, low cost wash plants, can achieve this type of recovery. I would guess that is would be closer to 65%. If my speculation is true, then I do not believe it will be economical to mine but a very small area of the property. Investors will see if this speculation is true when information is finally released in the next 2 weeks. So far the market has said that this speculation is correct. With low grades, low recoveries and low production ( currently only 40 cbm per hour), Ruby Creek is going to have a very difficult time proving that they can be profitable and make enough sustaining cash without major fundraising to increase production and exploration to find the high grade as well as money for more efficient recovery systems.

The encouraging statements by management will be shown correct or incorrect. Place your bets.

[Sound1]

great write-up...certainly makes me a bit nervous as a holder but great color, thanks

[Yukon_Cornelius]

Sam: " Ruby Creek is going to have a very difficult time proving that they can be profitable and make enough sustaining cash without major fundraising to increase production and exploration to find the high grade as well as money for more efficient recovery systems." I agree, and funding to scale up production to desired levels of volume and efficiency is vital to our success.

[DRRabbit]

Know anybody with lots of money? I'm going to call a local commodities broker/rich farmer and see if he's interested (went to school with and know his brother-in-law well) in joining the party. Good idea or not?