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Thursday, May 10, 2018

Eldorado's Aura

I've found it, after centuries of searching, battling Nimbys, indigineous communities and shareholders, the source of the immense wealth of the Incas, but it is here (link) in Brasil.


Sweet mother of god, that is 168Moz Au, it is bigger than some inadequate deposits like:
  • Olympic Dam
  • Pebble
  • Grasberg
All of that in a company worth ~CND$65M, that is the bargain of the century...

but......

ooooooooooooooohhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh fuuuuuuuuuuuuuuuukkkkkkkkk, damn typos. just a bit further down the page......



only a 1000 fold error, good job no-one reads mining company websites.....

6 comments:

  1. It looks a bit unclear who is the QP responsible for the release. Also, it's not obvious on SEDAR. What is obvious is that it's registered in the British Virgin Islands, the execs are from Brazil, and the Pres. (Barbosa) is getting very well compensated --$341,000 in salary, and nearly $750,000 in total compensation for 2017.--Management Information Circular May 8, 2018. Is it really a $65M company?

    Nice Gig if you can get it.

    Canadian Geo in Nevada

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  2. I looked at this company about a year ago. The key player is Paulo de Brito, Chairman. The key asset is the Serrote open pit copper project in Brazil. It's a good operation at $3 copper. They also have an underground copper mine in Mexico called Aranzazu that would make a bit of cash at that price. The gold mines were once owned by (I think) Yamana, but I could be mistaken on that. Maybe I Am Gold. In any case, they are small and mined out but are in a good area for exploration.

    The president is not a mining guy...is a beanie and came from some other industry...a stooge for Paulo I would guess. I would hate to be a mine manager in this organization...you would never understand corporate logic.

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    Replies
    1. The 'Aranzazu' acquisition was interesting and they've essentially done nothing with the deposit.

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    2. I think they need some money to restart it. From memory, it's not high grade and I think it's on diesel power. They have no reserves...only resources...were basically mining from day to day before it closed.

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    3. Some follow-up. Aranzazu is a skarn deposit that supplied a mill at around 2,600 tpd. There were plans to go up to 4,000 tpd but the site is power limited...needs a new power line. Also needs a tailings dam raise and a lot of underground development. Grades are in the 1% Cu, 0.5 g/t Au & 15 g/t Ag range. High arsenic in the concentrate, along with other penalty elements.

      San Andres is the producing gold heap leach in Honduras. It has limited life...about 7 or 8 years. Strip is beginning to increase.

      Gold mines in Brazil are tapped out but their project looks interesting, although very small.

      The best project is Serrote, a copper project in brazil. They've worked on it for about 10 years and it's ready to go if financing could be arranged.

      Lots of signs of a lack of cash...management bonus was deferred, director fees paid out in DSU's, etc. The chairman owns a large chunk of the company and is heavily involved in running it.

      Overall I rated it a turn-it-down opportunity unless they were willing to sell Serrote.

      Delete
  3. The QP is clearly stated underneath the reserve and resource statements.

    "Mineral Reserve estimates for Lavrinha were reviewed and audited in 2016 by Farshid Ghazanfari, P.Geo. as a Qualified Person as that term is defined in NI 43-101."

    I'm a bit surprised that a geo is taking QP responsibility for reserves.

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