Reading the posts all around the place today i think we are in need of some clarification between large mineralisation and economical to drill.
Remember that gold is actually at a very high price and even if that could change, some area of Balabag is now economical to drill.
There is some hole where there were no mineralization at all and if I am correct this is where all infrastructures will be installed and built. Nobody would like to build that kind of infrastructure where there is the most gold. That would be silly.
Now, the results by themselves are telling me that they are ok and some areas are great. Unfortunately they will not and could not comment any further as they need a 43-101 to be included with any comments more than what was already said this morning on the press release.
One thing that strikes me is the 12 more holes since the cut –off date (June 30th) and these are interesting. Why would you continue to drill unless there were in a very interesting area? Unfortunately TVI will not comment on these drill holes for legal reasons (and selective disclosures rules) but these seem interesting.
Now if they were to be in a higher range of grams per ton, I would not mind waiting 4-5 more weeks to get those drill holes included. Anyways, a 43-101 usually takes between 45 and 60 days to be produced.
But as far as I am concerned, their main objective of defining the 50,000 ounces to start up a bootstrap mine has been achieved. Now let’s go to the needed 43-101 report, start building the mine and we should see some gold going out of there somewhere at the end of Q4-2012. I mention Q4 because we never know what can happen and sometimes in the mining industry you get surprises. So instead of expecting large gold volume in Q3, I would imagine they will be under commissioning for the latest part of 2012 then the real thing will happen in 2013. (Remember zinc was a lot longer than expected even if they tried really hard to have it running at best possible % the first time. Mining is mining)
Without having all the facts in regard of the 43-101 it will be very difficult to establish for sure any economic data for that mine BUT I think that I could say that the price per ton to produce will hover around the 350-375$ per ton (again, we do not have the complete 43-101 and feasibility project) and they should be able to produce around 60,000 ounces per year (after commissioning) for a period that will vary between 6-8 years depending of gold price as the higher it is going to be even the lowest grade area will become economical and profitable. (Based upon original 43-101 and no added gold from the last drills)
But at 1600$ per ounce we are now talking about a project that will be over 500M$ IN PROFIT over the mine life is conditions stays at what they are.
Anybody that want to join the party is welcome !
