Sold dud Challenger ...
So announced today they've also sold stupid Bowdens. Sold 85% for $20m and the 85% will probably become 100% unless after a period of free carry they choose to put in for costs, which they wont imo.
Sold for $20m now, bought for $75m ($45m cash + $30m shares) four and a half years ago. Added to which all the costs of preparation over 4 years towards feasibility, environmentals, other legals, and so on.
Their strategic judgement is worse than mine, and i have been diagnosed with imbecility. You cant believe any mining management.
Historic Email exchange 03/11/2011
Hello,
I am wondering if the case for the Bowdens project can be further explained in your presentations to potential investors.
I don't understand how such a low grade silver resource is attractive to mine. Less than 2 ozs/tonne of Ag.
From the notes I can't judge whether that is before or after adjustment for 81% metallurgical recovery. I ignore the paltry presence of lead and zinc in the ore.
I really don't get it, I've been buying into spec miners for a few years, mostly unsuccessfully, and this Bowdens resource seems close to the most pathetic thing I've seen in a prospect. And the costs will be Australian not Thai.
I have only 2,000 shares in Kingsgate but was recently looking at it for a family buy when the price dropped. The Bowdens purchase is what put me off.
Rgds
finicky
Dear finicky,
Thank you for your enquiry.
For your information, please note that a 2oz/t Ag (~60g/t Ag) orebody is, for reference, equivalent to a ~1.3g/t Au orebody using the AuEq45 ratio we use.
For an ore body that outcrops and has a 1:1 strip ratio I think you might find that the economics look very attractive at current silver prices and quite robust on any reasonable forecasts. Please note that the Pb and Zn by-products would lift the grade closer to 78g/t Ag, equivalent to ~ 1.7g/t Au using the AuEq45.
If you would like to discuss further please feel free to contact me.
Kind regards,
Joel Forwood
General Manager Corporate & Markets
So announced today they've also sold stupid Bowdens. Sold 85% for $20m and the 85% will probably become 100% unless after a period of free carry they choose to put in for costs, which they wont imo.
Sold for $20m now, bought for $75m ($45m cash + $30m shares) four and a half years ago. Added to which all the costs of preparation over 4 years towards feasibility, environmentals, other legals, and so on.
Their strategic judgement is worse than mine, and i have been diagnosed with imbecility. You cant believe any mining management.
Historic Email exchange 03/11/2011
Hello,
I am wondering if the case for the Bowdens project can be further explained in your presentations to potential investors.
I don't understand how such a low grade silver resource is attractive to mine. Less than 2 ozs/tonne of Ag.
From the notes I can't judge whether that is before or after adjustment for 81% metallurgical recovery. I ignore the paltry presence of lead and zinc in the ore.
I really don't get it, I've been buying into spec miners for a few years, mostly unsuccessfully, and this Bowdens resource seems close to the most pathetic thing I've seen in a prospect. And the costs will be Australian not Thai.
I have only 2,000 shares in Kingsgate but was recently looking at it for a family buy when the price dropped. The Bowdens purchase is what put me off.
Rgds
finicky
Dear finicky,
Thank you for your enquiry.
For your information, please note that a 2oz/t Ag (~60g/t Ag) orebody is, for reference, equivalent to a ~1.3g/t Au orebody using the AuEq45 ratio we use.
For an ore body that outcrops and has a 1:1 strip ratio I think you might find that the economics look very attractive at current silver prices and quite robust on any reasonable forecasts. Please note that the Pb and Zn by-products would lift the grade closer to 78g/t Ag, equivalent to ~ 1.7g/t Au using the AuEq45.
If you would like to discuss further please feel free to contact me.
Kind regards,
Joel Forwood
General Manager Corporate & Markets