Had a conversation with Rob on a few aspects. One of them was operating a low grade mine and how feasible this was with higher production costs. He pointed out that canadian Arrow that have a 43-101 for their property 4km away (they have to drive thru our claims to get to their's) had a $9 per ton processing costs. He said that this did not include some other costs that should be in there and that based solely on their approach our cost per ton is around $7. However, once you factor in everything, we are closer to 18$ and that this leaves a good margin for profit at this point.
We also discussed the hole 23. He said that this hole was different that hole 001 discovery hole in that it had less copper but more gold mineralization. This hole is on a anomaly that they have not drilled before. If this hole proves out to be as good as they think, they may issue new flow thru shares to drill this anomaly. The head geo was quite excited about this hole and they are expecting assays next week. So if these assays are good, we will have a hole new ore body to drill.
The other issue was that a cross that was organized at the end of April to retire 500k shares was done with pre consolidation shares and should have only been 50k and this resulted in the rather large short position. This has now been rectified and we should see a big drop in shorted shares on the May 15th report.
Good luck all,
Glorieux
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Discussing the Dingman Property Results and Atikwa Lake Property Update
