syama gold mine, page-7

re: syama gold mine - news articles mmmmmmm... well folks. I do know a little of the Syama mine (cant say how). In my view its an absolute dog. and the market really pushed the RSG up in response to the deal didnt it?? (NOT).

This mine has very complex refractory metallurgy and uses a roaster which nowadays environmentally is as popular as Saddam Hussein in an Bagdad bazaar. The roaster never worked properly and neither did rest of the process plant.

If BHP and Randgold couldnt make money in the near surface component of the orebody at 3 to 4 g/t how will RSG at depth?? The pit has bad geotech problems which are likely to be carried thru to underground and in a deeper pit. Whilst there is a lot of ounces in the ground it is highly complex geotechnically, geologically, and metallurgically.

RSG have bought a problem. its no jewel.

In fact noone else in the industry wanted a bar of the project when Randgold were looking for a buyer, so the price paid by RSG looks high by my books.

Time will tell if they can make something out of someone elses problems, however I personally think RSG have made an expensive mistake.

my views only. Sell RSG on this one. (Making money mining is hard enough without buying bad projects). you can tell me I wrong in a couple of years.....

I also think RSG got their strategy wrong on Redback and should have used the leverage they had to get hold of Chirano when Redbacks price was low. To hold a plant capable of doing the job (Obotan) could have created strong synergies for RSG that RBK didnt have.

It all looks wrong from the outside.

acturtle