coyote plant, page-27

Chuck,
No disrespect and love your analysis etc. but can you show me any gold operation of substance in the western world that has gravity recovery only, without grinding? Only saying that to recover the gold on a commercial basis from an obviously nuggetty ore body, gravity makes perfect sense but only as part of the process. Look at the gold in the pan. It has been crushed down to a size smaller than achievable by a commercial crusher that makes sense. Sure, you could rebuild an old amalgam table (state battery style) and get great recovery but people get excited about the use of mercury these days. Also, coarse gold like this will not be recovered by heap leach. The thought of getting tied up with TAM is not worth talking about. They have a long way to go and should be considered as a possible take-over at some stage in the future or just someone to “keep an eye on” and pick up when they fall over.
This is a fantastic ore body in the throes of being uncovered but if the exploitation plan is not sound, the institutions will push it towards a management group that will present a sound plan. Now I know we all feel we should have a say in the way companies should be run because we own shares but the truth is, we have as much say as the percentage of total shares that we own – generally very small. We all want the “big boys” to move in and start buying, this is how we make money so we need to understand how they think as well. They will not be interested in a great deposit that, in their opinion, is being played with other than to see an opportunity to put it into another vehicle that will suit their needs (FML is sort of an example here). I have used these terms before and do not apologise – nobody wants to see a potential world class orebody being mined in a Mickey Mouse fashion just to save a few dollars. My opinion is that to get maximum (current) shareholder value is to do it right, put in our own mill (possibly modularised so that scale savings can be made in future). The mill must be designed to match the orebody – often the hardest bit, particularly an orbody growing like this one. Getting the size right is the hardest bit but there are a few “rules of thumb” that can be used but I will leave this to management.
Could go on for ages on this but as I have said, a great orebody, fantastic discovery and potentially a lot of value for us – IF DONE RIGHT. Well done to those on site – must be exciting times but don’t forget, the transition from exploration to production is difficult and many fail. Think outside the square.
My opinions only etc.