seeing that mxr have a motza of ero shares, then ero reports are...

seeing that mxr have a motza of ero shares, then ero reports are important for mxr holders

just to digress a bit, but earlier this year, mxr released a report, claiming that they would be able to produce 7 oz of gold per day, with operating costs of $6000 per day, and revenues of about $10,500 per day, at a gold price of about $1500 australian per oz. . with the present australian gold price of about $1150, then the margin is halved. as it was, the company never remotely met what was indicated, and the whole lot was closed down


what relevance does this have with watso's posts - well, ero seem to be suggesting that they will produce similar amounts of gold. the difference being that mxr suggested that they would treat 20bcm per hour, at a grade of 1.1gm/tonne, ero suggest that they will treat at the rate of 50 lcm per hour (lcm and bcm, must be relatively similar), and a grade of .5gm/ton. all things being equal, one would think that treating double the dirt, would result in a corresponding increase in costs - well, maybe not double, because there are fixed costs, and variable costs. for whatever reason, assume that ero, with their proposed alluvial operation, have circumstances, where the treatment costs, per ton of dirt are a lot cheaper, but seeing that they have to treat at double the rate, then the costs might still be $1000 per oz. frankly, the margins are not there, to make any difference - and what if things go wrong (as for mxr).

would love to hear from someone, who knows a bit about alluvial treatment.

what shareholders should question is how many public companies are PRESENTLY involved in alluvial gold projects!!!!. in the past, there have been one or two, but they tend to have been short lived (except in the very early years,). watso is aware that mxr and ero want to be involved - but how many others are??????.

the beauty of gold, is that there is a project for everybody - from the individual with a metal detector, to a guy with a small show (mmm - not so much these days,with the closure of the "state batteries") - nevertheless, with a bit of crushing etc etc, then small shows can be worthwhile - and alluvial shows should be good for individuals, as the gold is easily recovered (on the basis that it is heavy, and readily left behind when run over a sluice - for eg)

from watso's point of view, alluvial deposits are a waste of time for public oompanies ...ero are down to their last $800,000, and unless they show that alluvial gold can be worthwhile for a public company, there will be a capital raising before christmas, which will dilute mxr's holding (unless they find the funds to take up the issue)