RE: RE: Northern Miner article22 Feb 2018 23:29
I was trying to dig out the question on all our minds. If it�s got great potential, why has capstone not developed it properly? I know Okenia explained it in a circular logical manner, but I wondered if there was more �hair� on it, ex local resistance, indigenous groups, legal or environmental issues etc. Can�t see any hair (yet! Bald is good, Peter agrees ;))
I find it very odd that capstone kept drilling every 1-2 years, creating updated FS/PFS, looking for license, mining, water renewals. A lot of paper work to keep extending mine life by few years each time. Truly seems as though they treated Minto as a step child as PB suggests. I do get the fact that it happened in a copper downturn environment, and has to be seen against that background and assets everywhere were put in care & maintenance by miners to save costs, but considering the grades, it has never been marginal, even at low copper prices. (For this phase break even is $1.92/pound Cu price)
Few other facts from the last PFS (June 2012): 16 sq km has seen drilling out of total 28 sq km. The area in the north and either side of central-east, has seen little exploration, ie provides exploration upside. Especially prospective seems the fire keel area, which was drilled in last drill program (2012), and gave some of the highest grades seen on property. I m not sure how much of this has been mined yet.
On geophysical mapping, geophysical techniques and good old hard graft soil sampling etc too, it appears the property hasn�t been systematically fully scanned. They refer to data fidelity only being good upto 350m underground. I know that we have methods going 0-1.5km deep, and then 1.5-3 km deep. It would appear they have spent minimum amounts possible to keep the mine going, and chosen the cheapest least expensive means.
Geologically, it appears the structure is confusing geos, they refer to it as IOCG type, with hypogene ore (sulfides) plus overlay of sheeted veins, likely supergene enriched. (May explain the high grades 3% Cu, 1.5% gold etc). They asked for help from the MDRU at BCU. (Mineral deposits research unit at British Columbia)
Just few observations and comments. This looks very promising and neglected/under developed. Happy to be corrected...DYOR. Good luck all