Respectfully disagree. They are mining now although granted not at full production. The release indicates 90,000 tons of ore mined by year end. At the indicated 8 grams per ton that is over 28,000 oz. Our favorite poster indicates a higher rate and if correct this oz produced total goes way up. This does not count the low grade ore which was stock piled and has proven to be productive.
Will they burn money on the start up, yes but cash is beginning to come in, perhaps 30 million in production by year end.
So sewells at 90,000 tons at the current official rate of 8 grams per tons they are looking at 28,000 ounces by my count and at your predication of 12 grams per ton that is 42,000 oz produced by year end.
Best of luck to us all
Johnny they are crushing and processing the rock to produce the gold at a rate of 1900 tons per day. I think they can get the gold out of it. Once the first stope is complete it should not be long before we know the grade. I am leaning to Sewells point of view on where the grade fails at
The following statement can be interpreted to mean 140,000 to 180,000 tons of rock mined and sent to production by the end of 2015. Not so bad for a company going thru start up shake down.
Currently, only the initial trial stope is in the draw down cycle. There are seven full sub-level stopes, and four smaller take down back ("TDB") stopes to be drawn down for the remainder of 2015;
So, curious how much gold will be in those 20,000 tons and what will it be worth to Rubicon
Oil imports up to 8 million bbl per day last week. Why are imports rising when the USA is awash in oil.
The rule of thumb is use what you have if you think prices are going to fall, buy now if you think prices are going to rise.
Below is from the article in Oil Voice. Google topic to get the whole thing
"There are always myriad reasons why vast oil resources worldwide may not be produced, and in this week's Oilgram News column, At the Wellhead, Charles Newbery digs into challenges facing the biggest shale play in Argentina, which could rival the prolific production of US plays if properly tapped.
Argentina has drawn wide interest for its vast shale oil and natural gas production potential, but when it comes to committing investment to extract the resources, the hesitation is just as significant.
The potential is huge. The US Energy Information Administration estimates that the biggest play, Vaca Muerta, holds 16.2 billion barrels of oil resources and 308 Tcf of gas resources. That's enough for the country to emulate the US shale boom.
ExxonMobil, Shell, Total, Wintershall and others have taken stakes in Vaca Muerta, but only Chevron has advanced into production in a partnership with state-run YPF. They are producing about 43,000 b/d of oil equivalent, the first shale oil extracted outside North America.
The others are moving toward pilots, a slow progression that is a sign of how hard it is to do business in Argentina and achieve what is most important for developing the play: getting drilling and completion costs down to profitable levels.
YPF is making a go of it. With Chevron, it has drilled 360 oil wells in Vaca Muerta and brought down drilling costs to $7 million per well for verticals this year from $11 million in 2011.
But that's still shy of the $4-5 million target, or the cost of horizontal wells in the prolific Bakken and Eagle Ford Shales.
Without reaching these levels, 'the wells won't be profitable,' said Alex Fleming, a senior manager in oil and gas at EY Advisory, a US-based business advisory.
It's a sort of chicken and egg dilemma. Without profits, the estimated $20 billion a year needed to develop the play won't come. And without this investment in drilling tens of
Billionaire Stan Druckenmiller and Mason Capital Management sold their holdings of Argentina’s state-controlled oil producer YPF SA, while George Soros cut part of his stake.
The family office for Druckenmiller, the former chief strategist for Soros, sold its $19 million position in the company in the second quarter. Soros Fund Management reduced its stake by 5.6 percent to about $302 million as of June 30. Mason, which had been YPF’s second-largest minority shareholder, sold its $431 million stake.
While YPF has become a widely held security among hedge funds betting on an investment boom once Argentina settles with creditors from its 2001 default, firms including Dan Loeb’s Third Point and Richard Perry’s Perry Corp. have cut their stakes amid a global rout in oil prices over the past year. Crude has slumped 56 percent in the past 12 months.
PointState Capital, which became bullish on oil after making $1 billion last year betting crude prices would fall, bought shares in the second quarter. The hedge fund increased its position by 40 percent to about $75.7 million as of June 30, filings show. PointState co-founder Zach Schreiber said in April that oil prices “are going to go higher.”
OakTree Capital Group LLC, the world’s biggest distressed investor, purchased a $12.8 million stake -- its first position in the company in at least 18 years. Point72 Asset Management, which manages Steven A. Cohen’s personal fortune, also built its first position in the oil producer with a $6.8 million stake. Rob Citrone’s Discovery Capital Management grew its stake by 1.2 percent to about $124 million.
YPF’s American depository receipts have slumped 8.9 percent this year. Despite the rout in oil, the company, which was nationalized by President Cristina Fernandez de Kirchner in 2012, has benefited from selling crude at government-set prices that are higher than the international benchmark.
Contra, if you are following these articles it is not the frackers that are going to make the long term cuts, its BIG OIL and the big projects. that take years to complete. Frackers can drill a well and have oil flowing in less than 30 days. That fast response time spells trouble for both big oil and the Saudis.
With current technology the core of the Bakken is profitable at $30 dollar oil. Saudis need $105 dollar oil to pay for their social programs. Further the rich folks are starting to move money overseas putting even more pressure on the kingdoms financial reserves.
The Saudis have a problem
"Bakken oil production in North Dakota has fallen less than 2 percent from its peak in December, while the number of oil rigs in the state has fallen by 60 percent. EOG Resources Inc., the largest shale driller, says it can make a 30 percent after-tax return on $50 oil in its best plays. Whiting Petroleum Corp., the largest Bakken producer, said it’s preparing to be able to grow production at $40 to $50 prices.
“A single break-even price doesn’t actually exist,” Foiles said in a presentation. “Rather, what the model indicates is that at a realized oil price of $29.42, half of wells will generate returns exceeding 10%. This price is considerably lower than the $70 breakeven estimated by industry watchers at the start of the oil price slump.”
There is a new article out from OilPrice "Saudi Oil Strategy: Brilliant Or Suicide?" The Saudis are in deep trouble.
Yeah but they better socialist government than we do
That is why the world's richest oil producer is going broke if oil prices don't go back up. Same fate that awaits the USA if we don't throw the socialists out and soon
Steel I give a thumbs up for the post.
Note however that the Saudi reserve situation has another componet. Rich Saudis are moving their money out of the kingdom. This will accelerate their budget issues
Clearly I am a fan of Madalena. Great land, good financial situation, great potential. The draw back is it would take years and years and lots of money, couple Billion perhaps to develop their properties. I would look for more JVs or an out right sale at some point.
The two wells be drilled this summer are very important as that section is 100% Madalena operated. Good results at his stage good be very beneficial.
Just keep in mind with great reward comes great risk. Be careful
Steel, for me the Zero Hedge article re-enforces my belief that it is the Oil Majors that will be forced to change in this environment. Also this article further validates that the Saudis are in trouble.
Shale producers can respond very quickly to any price change unlike the majors. Saudis simply can't afford these low oil prices for an extend time frame. It will force majors changes in the social structure and lead to civil unrest
I am surprised there is not more discussion on this article. The situation the Saudis find themselves in is game changing.
Google the title for an interesting article on building cash hoard being targeted at North American oil and gas.
"Many investors will be shocked at a new report this week. Showing that investment in the downtrodden natural resources sector is actually hitting record highs right now. Research firm Preqin, as covered by Law360, reported that resource-focused private equity funds have raised an incredible $28 billion so far in 2015.
That lofty figure puts resource investors on pace to eclipse -- and likely crush -- the $30 billion that was raised during full-year 2013. Which currently stands as the highest-ever year for natural resource investment.
The interesting thing is that this massive pool of capital is coming from an increasingly concentrated group of investors. With this year's $28 billion figure being raised by just 13 funds.
That's well below the 32 funds that closed in 2014, and down significantly from the 42 groups that raised cash for resources investment during 2013.
Much of this year's cash is being earmarked for the North American oil and gas sector. Led by Houston's EnCap Energy, which raised $6.5 billion for energy-focused investments."