GC and Kermit,"I'm pleased that I keep you amused" says hcmif...

GC and Kermit,

"I'm pleased that I keep you amused" says hcmif smiling.
Let me weave another fairy tale.

Alpha announcement 15th Feb 2011
80,000 tonne at 4grams/tonne
ASSUME that's a valid grade.

80,000 tonnes at 320000 tonnes pa is 3 months throughput.
4 gms per tonne approximates 10,000 oz
3300 oz per month

That's assuming the whole 80,000 can be dug and processed in 3 months.

Add in the additional costs of clearing, transport.

Fairy tales from
ASX 5th Feb 2009

Consolidated resource BrightStar now more than 1.7Moz
A1 Minerals initially expects to start producing gold at a rate of 30,000oz per annum. Cash costs are expected to be $US 420 per oz (my comment - even allowing for for exchange rate this was never met)

15th December 2009
MAJOR NEW GOLD TARGETS NEAR BETA PIT
wow my fairies took this gold and sprinkled it somewhere else :)

SO WHAT HAPPENS AFTER THIS?

Read 28th JAN 2011 ....extract
Delta (Cork Tree Well)
....seen as the most likely to replace ore feed......

TRY READING PRIOR ASX announcements and look at the reserves announced and the grades....

IS the JORC previously announced for Cork Tree valid?

A Fairy tale extract from......

ASX 6th August 2010
> Currently Mining 'Bonanza' Ore Grades
> RC Drill Assays up to 10.3 oz per tonne Gold (322g/t gold)
> Leach grade 3.43g/t gold and steadily rising
> Plant throughput currently 1000 dry tonnes ore per day
Signed by J.Williams

ASX 23rd Sept "Best gold pour yet for A1 Minerals as operations ramp up" Mr Hunt added: "I expect that during the next quarter the company will be consistently achieving its target of producing at the rate of 30,000 ounces of gold per annum".

signed by Albert Longo
Finance Director

ASX 25th Oct
September Quarterly Activity Report
INCLUDED the following
>It is expected that cash costs will fall to the targeted level of $700 per ounce.
> 8280 oz gold production forecast next quarter

Based on a annual production of 30,000 oz (7500 per quarter)
Sept Quarterly reported 4259oz (3241 oz short)
Dec Quarterly 4107 oz (3393 oz short)

There's now leeway for RISKS to
1. Price of gold FALLING
2. Maintenance costs
3. Grades not being met
4. Creditors demanding payment
5. Stock market FALLING in wave "C"

Funny as I write I checked details of the Alpha Sooooh add
6. Weather events affecting costs and throughput.

Maybe our govt will bail A1 with an "infrastructure tax" :)

MORE FAIRIES

In another ASX announcement
16th July 2009
A1 has an existing high grade Indicated Resource 94,000 tonnes @ 5.9g/t AU on the Zeta tenement within a lower grade halo.

Read the rest it's riveting
BUT
Zeta was NON CORE and it was sold to Regis. ie Zeta M38/802 for $1million and there's more

On 08-12-10 I ended by writing

"I guess my take is that the market has lots of fish. If the place that I'm fishing is NBG move to find the fish... if the fish move back to the first place ....then go join the other anglers again.

I've swapped to other gold stocks and Uranium stocks which looks better on the charts. Uranium like DYL, UNX, BLR, TOE, I think BLR is worth a punt. look at it's daily weekly and monthly charts.

regards to all"

Since then I've sold all my DYL at +100%, All UNX at 100%+
holding TOE at 30%+, holding BLR at 60%plus

I think that this market is dangerous and choppy.
Seems to me that the Advance / Decline is probably DROPPING
Some stocks are having spike days on large volumes and then FALLING.

Gold stocks with good reported grades AND profit are not currently supported.

"So I'll consign AAM to the fairies and dreamland" says hcmif sometimes dreaming of what might have been.