Gold Mine Advice
I have followed Abacus for at least 10 years. Canada. Abacus has indications of sizeable tonnage of low grade and, hopefully, economic copper gold ore in three mineral deposits, (Abacus news release July 6, 2005). The next step for Abacus is to demonstrate that the open pit mineralization is viable by doing more drilling and a feasibility study. The company has limited funds at this time, and will need to raise money. I believe the value and the opportunity substantially outweigh the risks at these share price levels (around $0.25 per share.)
Abacus has spun off the Niblack properties as a dividend to the shareholders and will soon start trading under the Niblack mining name. Any value consideration of Niblack is now irrelevant to new investments in Abacus shares, (Abacus news release March 29,2005.)
The reason the project is likely to be economic is that Abacus soon expects to complete the acquisition of the original Afton milling facilities, including the tailings pond and the permits on these three established mining pits, (Abacus news release June 15, 2005). Establishing this type of facility is difficult and expensive, so this acquisition is important to the company. Such an asset knocks years off the time required to get into production. I am guessing that this purchase will prove to be more than a $30 million saving. It will allow Abacus to go into production in a year once a decision is made. The pre production period when Gibraltar mines went into production (40,000 ton per day open pit, was an exceptional eleven months.
I feel confident in speculating that Teck Cominco is selling this property to Abacus because the Abacus open pit mineral zones are a less speculative opportunity than DRC's higher grade underground deposit. I have been around Teck Cominco for many years, and feel that their diverse operating and engineering experience is the best in the world. Teck Cominco's risk assessment abilities and their ability to grab good opportunities, are exceptional. They have placed their bets with Abacus. Teck Cominco will become the largest shareholder in Abacus.
DRC has wrongfully included this Abacus Afton acquisition asset in their appraisal Nike Shoes Women (preliminary feasibility) scoping study and still continues to make reference to Nike Shop Sydney this document to establish they have economic viability, (See Nugold announcement dated October 6, 2005.) It will likely take DRC approximately one more year and a new feasibility study to re establish viability. I do not perceive that environmental and other regulatory agencies will permit two mills, two tailings ponds etc. on essentially the same property and next door to each other.
If DRC achieves permitting, it may have to be on a much smaller scale and a different mining method than outlined in their original scoping and preliminary Cheap Nike Shox feasibility report. Some form of merger of these mineral interests is probably going to have to occur. With the mill and permits I think Abacus will prove to have the upper hand. (Please refer to the Afton claim map.)
The Afton Abacus deposits include the Rainbow zone which Teck would probably have mined, had copper been above $1.00 per Mens Nike Roshe Run Trainers lb in 1997. Some mining occurred on the DM Audra crescent zone. The last time Teck mined in this area, were in the Ajax pits, and thus were the lowest cost to mine. The Afton mine closed in 1997 at about $0.85 per lb. of copper. Copper is now over $1.75 per pound.
DRC drilled several holes near the Ajax pits and intersected large widths of lower grade copper mineral. A substantial amount of new drilling is required in this area by both DRC and Abacus. It is reasonable to suspect this Ajax area may represent the best opportunity to re establish production. The DRC hole suggests to me a much larger mineralizing system beyond the existing open pit controlled by Abacus, (DRC announcement July 15,2004). I find it very curious that the Ajax pits were a hard black rock with Nike Roshe Runs Australia a nearby parallel picrite zone. This is similar to the geological conditions near the DRC high grade mineral zone.
Another geological possibility is that the magmatic system represented by the DRC mineralization is at a lower level, deeper and related in the same geological structures in the porphyry systems that represent the known Abacus mineralization. There is a good possibility that deeper drilling in the Abacus mineralized zones somewhere, and at some time will intersect higher grade magmatic mineralization at greater depth.
The extraordinary advances in large open pit mining equipment, have made lower grade ore more viable than New Balance Runners Online when Afton was operating. Some deeper mineral deposits, that were not viable as deep underground ore, may be Buy Nike Air Max 90 able to withstand as much as a 15: 1 waste to ore stripping ratio
Such higher grade if intersected in one of Abacus open pit developments, would draw significant market attention on Abacus. I have purchased Abacus stock as an outsider, Cheap Nike Roshe Run Uk and am willing to take what I believe to be a calculated, geological risk.
There is going to be some excitement here. Stay tuned to the Mining Stocks Blogger, because there should be more good news coming on Prairie Pacific Energy (PRP), Goldcliff ( GCN ), Abacus ( AME), and DRC / Nugold, ( NGD).
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