Here is some more information on one of US Corp's properties. I can see two problem areas. One is the 3 years to production and the other is the environmental permitting. I would assume and hopefully can confirm that the environmental permitting is well along the way to completion. I will try and ascertain this from the company and pass it on if I get an answer.
I hope someone will try and take shots at this company and tell me why it is a bad investment! Otherwise, $0.19 per share looks pretty enticing for a $9 million market cap, 30 million share, high grade, low cost gold mine! Some more of the pros are: they have power, they have water rights, they have access, they have nearby(7 miles) labor in Baghdad, AZ, recovery rates of 75-85%, etc.
From the 2007 US Corp Twin Peaks Feasibility Study
http://www.uscorpnv.com/twinpeaksfeasabilitystudy.pdfGeology and Resources p.8
The predominant host rock of the area consists of various crystalline grades of granite and diorite. Numerous cross cutting pegmatites and quartz veins are observed. The large number of pegmatites encountered, have led to the surmise of
a possible batholithic halo. Gold enrichment is largely fault controlled and large areas of poly-metallic ores are present.
At the south end of the property, Cretaceous to
Tertiary Rhyolite intrusions have cut through the granites and produce lava flows capping older alluviums. Largescale faulting and metamorphism is observed throughout the area.
Numerous dikes crisscross the area. They as well as faults and brecciaed areas have given avenue to hypogene enrichment.
Based upon surface geology of the site and core drilling mineralization of the property it appears to fit the United States Geological Survey, model 17 and 20c as outlined by Cox and Singer, 1986. These are both
large-scale porphyry models, which indicate very large deposits in the one hundred to one hundred fifty million ton range with significant gold and silver grades. Other examples of these porphyry models occur closely within the region. Extensive drilling and surface geochem programs have been performed upon the property as well as numerous samples taken
at depths of up to 400 ft. in the historic mine workings. The bulk of the sampling has consistently yielded results in the 0.12 to 0.17 ounces per ton ore grade for gold and 0.6 oz. per ton ore grade for silver.
High grade lenses and pockets occur within the property, usually at structural intersections.
Some samples have achieved appreciably higher results. These have not been averaged however, due to the possibility of nugget effect.
Resource Modeling p.9
It has been observed for some time within the Twin Peaks property that
mineralization generally follows a structural trend, of North 20° east and a
general alignment of the three major past producing mines places them all along this strike. Crosscutting structures and displacements tend to
separate mineral lenses and concentrate mineralization and structural intersections. The major ore bodies consist of oxide ore and are very amiable to processing with
conventional pulp leaching technologies. Several pockets however, have been
identified of concentrations of non-oxidized or with large metallic particulates.
Conventional cyanide leaching will take too long to recognize complete recovery
of these assets. Therefore,
the resource model is based on constructing
separate benefaction circuits and separate mineral envelopes for disseminated
lode and nugget bearing ores that follow the general geologic trend.
Metallurgy and Processing p.11
The Twin Peaks property can be
classified as a high-grade gold property. Gold values are consistently above .05 oz. ounces per ton with isolated lenses and pockets, reaching values of 2.25 ounces per ton. Silver values are in the .6
ounce per ton range. Samples taken in the vicinity of the Hayes mine have
exceeded 60 oz. of silver to the ton. Furthermore, the gold can be classified as
free milling. Epigenetic heating has tended to concentrate it from its original
disseminated deposition yielding larger particles than the sub-micron found in
other disseminated lodes. Historical production shows it very
amiable to gravity
extraction. Pulverization tests and wet circuit gravity extraction have given
excellent recovery of the coarse gold and silver.
Concentrates and Gold Sales p.19
Operations at Twin Peaks are expected to produce an annual average of 13,396
Troy pounds of precious metals each year, of which 34,748 oz. are gold and
126,000 ounces are silver. Concentrates will be smelted to dore' on site or
shipped directly to smelter in sealed containers.
Project Economic Model p.19
This feasibility study has established that the Twin Peaks deposit can be
developed by open pit mining followed by gravity circuit to generate gold /silver
concentrate and additional cyanide leaching of tailings for gold and silver
recovery. This study indicates that 612,000 oz. of gold in 3,600,000 tons of ore at
an average gold grade .17 oz. to the ton and an average silver grade of .6 ounce
to the ton can be mined and processed economically to recover 446,760 oz. of
gold, and 1,620,000 oz. of silver.
Development of the project yields a first year net present value of $3,012,788 at
a gold price of $600 oz, and silver price of $12 oz. Total pre-tax cash flow after
expenses for the first year is $10,602,183.
The total initial capital is approximately $12,974,728 with an additional
$57,961,720 of sustaining capital (includes final reclamation) required over the
12.9 year mine life.
Cash operating cost per gold ounce produced is $154. When
additional production taxes are added to the capital costs total cash and noncash
costs,
fully loaded are $250 per ounce.This feasibility study considers an average annual mining rate of 280,000 tons
over the 12.9 year mine life. This includes 140,000 tons of waste and 140,000
tons of ore for an average stripping ratio 1:1. Conventional truck and shovel
mining methods will be utilized with the processing for an 800 ton per day plant,
yielding an annual production of 34,748 oz. of gold and 126,000 oz. silver when
the mine is in full operation.
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Thu Nov 01, 2007 1:22 pm
Now that's what I call leverage. Just look at Seabridge with almost all of their gold in the inferred category! Think of what a little advertising could do for this company!