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Gold Resource Corp Message Board

  • engynear engynear Mar 27, 2013 7:29 AM Flag

    Perfecting the Pump

    On August 12, 2011, two months before the completion of drilling for the 43-101, Bill Reid was interviewed and was bursting with grandiosity over what lay beneath the surface in Oaxaca.

    Here is what he said:
    ""We have announced that we have 8 years of 3M tonnes of mineralized material."

    Then he told the interviewer the grades of the material. Here are the grades, he gave along with the actual grades experienced in 2012 in parentheses

    Gold - 6.5 0 g/T - (4.30 g/T)
    Silver - 506 g/T - (355 g/T)
    Copper - 0.60%/T - (0.45%/T)
    Lead - 2.20%/T - (1.70%/T)
    Zinc - 6.50%/T - (3.98%/T)

    So far he is off by about 285K ounces of gold and 14.5M ounces of silver, or near $800M in revenues after recoveries and treatment costs. That's in the ballpark to the value of the drop in market cap from the 26 at the time, to 12.75 now.

    How does a management work the "pump" now after that disaster?
    Simple, they rely on the poor memory of its followers and tout a new mine on the other side of the world again giving specifics as to grade to expect so you believe you can "mail it in" for the revenue from those grades.

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