carimakan, thurmaan,Check resource update of June 2008.Measured:...

carimakan, thurmaan,

Check resource update of June 2008.
Measured: 225Mt .35g/t Au, 10g/t Ag, .11% Cu.
Total measured, indicated and inferred is TRIPLE that at
627Mt for over 10M oz Au equiv.

An open cut mine could be supported at a throughput of 15Mt pa producing about 130,000 oz Au plus Ag and Cu credits. With a huge tonnage of over 600Mt atm, do you think the operation will remain at 15Mt pa for 40 years? I doubt it, and there are other targets showing high surface mineralization within the tenements as well as the current resource being open at depth and laterally. What I've read states that cost of throughput for just plant is only 18c/t and $3.80 something covers other costs. You can do that math but 15M x $4 = $60M and 130,000 oz of Au at say $600/oz = $78M. If they could make a $20M profit to start with before they bolt on more mill capacity, they're not doing too bad.

There are three wild cards...further drilling outside Cerro Del Gallo could prove the tonnage of this project to be awesome. Secondly, Goldcorp is still in the wings and we know the Majors like the juniors to prove up a resource before making a move, one way or the other. And don't forget Kalman.

You are right thurman, the sp has collapsed since 50c but so has everything else, probably by greater %'s. I have a gut feeling though they will raise their capital but at what level, who knows in this climate.

And btw, experience has taught me not to fall in love with a stock and that's the case with KMN.




Cheers,




Please DYOR.
One day you'll thank me.