Silver Eagle SEG.TO

Met Terry after Karl left ..yes, he recognized the names Shelby, Leonard, and Jason - (the bible guy )
He talked a lot about the history of the company, how the investor world does not understand it.
He thinks stock is down due to Morgan ( " I expoloded when I heard that Morgan was handled wrong info " he said.) and due to tax loss selling.

He invited me to come visit their mine in Zacatecas.

Hi All,
is the grass greener over here?

Bull I watched your video on SEG, you must get around a lot these days.
They were putting in a 150Tpd ball mill at the time and had a 50 Tpd mill running already I think, so that takes it to 200tpd.

Is that 200tpd as in 8 hours or 24 hours or something else?

Do they have plans to increase that capacity, and what is the general time table on that?
I see Miningpedia has 200,000 Tpa for 2009, that makes about 800tpd with a 250 working day year, is that going to happen?

Great to see you at this forum Andy!

Quote :

Bull I watched your video on SEG, you must get around a lot these days.

I haven' been to see a mine in a couple of months, but I hope to make another visit to one soon.

Quote :

Is that 200tpd as in 8 hours or 24 hours or something else?

That would be calculated at a 24 hour grind rate. Of course ore has varying hardness, so in reality they could come close to 275 tpd.

I need to ask Terry (CEO) what they are able to grind at the max. right now. Both mills are now operational.

Quote :

I see Miningpedia has 200,000 Tpa for 2009, that makes about 800tpd with a 250 working day year, is that going to happen?

I think there is a fairly good chance it will. The mill complex was specifically designed for rapid scaling to a larger operation. The tailings dam can be enlarged very easily. Thickner tanks and flotation circuts can be added to east and west without interuptingcurrent processing.

The main objective will be mine development, but they have plenty of time to drive the king ramp down the Calvario vein.

Terry has shown that he can get mill equipment ahead of schedule and his maintenance crew has shown they they can build the necessary components.

Thanks for your comments Bull,

OK, more questions.

Do you think this will be a 24h or 12h operation?

If they plain to get out 3.2M oz Ag eq in 2009 at a 31oz per tonne eq grade at 70% recovery that means they will need 550tpd 24h or 1100tpd 12h, based on 270 working days.

PS I have no idea about the number of working days in Mexico.

Based on the above question, what do you think the total operation costs will be (Labor, O/H, everything) to maintain that production and the total company?

Do you know what the total costs are now that they are up to 200tpd?

I would appreciate any comments,

Quote :

Do you think this will be a 24h or 12h operation?

They are operating 24 hours a day, underground and above (mill included)

Mexicans are devout catholics and like to take sundays off.

Quote :

Based on the above question, what do you think the total operation costs will be (Labor, O/H, everything) to maintain that production and the total company?

I want to say $64 US, but they are reducing costs as we speak (haul equipment) so it is still very hard to say.

SEG has a nice set-up because they are right on the outskirts of a fairly decent sized town and very near Torreon, which is a mining supply city.

The hi-way from Miguel Auza, to Torreon, is a major truck haul route, and is in very good condition.

Quote :

Do you know what the total costs are now that they are up to 200tpd?

It is very hard to calculate at the present time. SEG is in bulk sampling mode, but at the same time, they are making many adjustments.

This willl be another very good question for Terry, when I speak to him again.

Thanks again Bull,

When you say $64 US what is that? 64 million per year total operation costs?
Or $64 dollars per person per hour including O/H?

Just to be clear what I was asking for is the total company expenses for a whole production year including Over head, when they are pumping out 3.2M oz Silver eq, hopefully in 2009.

They should know this, and I hope they will tell you.
My plan is simple, to minus the total per annum operation cost from the projected revenue to give the real Future PE, and thus capital gain potential.

OK, Some questions for Terry if you talk to him:

What are their production goals:
2008?
2009?

As above what is the estimated total operation cost per year to run the mine and everything that goes with it?

NZ_Andy wrote:

Thanks again Bull,

When you say $64 US what is that? 64 million per year total operation costs?
Or $64 dollars per person per hour including O/H?

Sorry, meant to sat $64 per tonne of ore running through the mill.

I will try to organize some questions and talk to Terry before week end.

BTW It would be nice to have Jason share some of his DD.

Quote :

BTW It would be nice to have Jason share some of his DD.

Yes, you would think he would say something.
But never really has that I can remember apart form the promotes, they don't happen ether lately.

I think I get the point,

Must be the middle of the night where you are don’t you ever sleep?

NZ_Andy wrote:

Must be the middle of the night where you are don’t you ever sleep?

I sleep 2-3 hours twice a day...sometimes I nod off for a 20 min nap at the computer...chair is to dang comfortable.

#152 Today, 11:44 AM
bull
Senior Member Join Date: Dec 2006
Location: Calgary, Alberta
Posts: 1,270
Rep Power: 3


Freebie!

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http://ca.news.finance.yahoo.com/s/0...derground.html

Silver Eagle Intersects Another New Vein Underground


Quote:
The B2 vein was intersected while crosscutting on the 146 metre level. Developed for 15 metres, it averages 0.9 metres in width and 0.15 gpt Au, 97 gpt Ag, 2.3% Pb and 2.3% Zn in grade. The B2 vein, as well as the other six veins (see chart below and visit http://www.silvereaglemines.com/feb-7-2008-new-vein.php to view maps), remain open to depth and are being developed as part of the ongoing test mining and milling taking place at the Miguel Auza Mine.

There's your access to two new production faces!

Add= I may have to lower my all-in production guesstimate!


Quote:
The following table shows the in-situ channel sample assay results achieved over 818 metres of sulphide vein development to date. Metal content and silver equivalent grades were calculated using metal prices of US$600/oz Au; US$11.00/oz Ag; US$0.65/lb Pb; US$1.00/lb Zn, and on plant recoveries, smelter terms and a minimum grade cutoff value of US$40 net smelter return

Arian Silver has similar grade ore. They figure they can produce for $40 per tonne, as well. I got this from Gord Zelko, who was just at Arian's property (San Jose mine)


http://www.mineralstox.com/info/street.asp?newsid=1541

Quote:
The mine operated from 1973-1991 and 1993 – 2001. San Jose has great infrastructure – there are several old tunnels and workings that are wide enough to drive a truck through. They have been cleaned up and Arian personnel are sampling along them consistently. Even though previous operators have mined out much of the high grade core of the vein that is the tunnel, the walls all around the vein often have high enough grade to be mined economically – CEO Jim Williams says they are consistently sampling rock with dollar values ranging from $50 to $150 per tonne, and he estimates probable, all-in operating costs of no more than $40/ton.

__________________
Leonard Wall
Investor
http://www.silverbullreport.com/
https://silverbullreport.forumotion.com/

Silver Eagle Purchases Equipment to Enable Mill Expansion

http://ca.news.finance.yahoo.com/s/14022008/28/link-finance-news-silver-eagle-purchases-equipment-enable-mill-expansion.html

Very nice!

Its like I told Shelby. Terry put somebody on finding a ball mill, full time.

The result is, SEG got a fantastic deal. Probably saved SEG shareholders a lot of money.

Here is a ball mill, but how does it save money? Not real familiar with this type of equipment.

A ball mill is fairly standard equipment for an operating mine.

What I meant by SEG saving shareholders a lot of money was simply that, because there is such a high demand for used and new mining equipment, a company could easily over pay.

By having someone on the hunt, full time, SEG got what I consider to be an absolutely excellent price for all the equipment they listed in the press release.

BTW some contrast for you. Terry Byberg and I stayed in a $8 per night hotel when I visited SEG's mine in Mexico. Jim Williams of Arian silver and I (among others), stayed in a $300 per night hotel while visiting Arian's property in Mexico.

Fortunately for holders of SEG, Terry is very cognizant of shareholders assets.

Terry or Jim - I would vote for Terry anyday !!

silverman wrote:

Terry or Jim - I would vote for Terry anyday !!

I would have to agree.

BTW If you go to SEG's website, you will see a picture of a drill rig in the area of the historic adobe head frame.
http://www.silvereaglemines.com/

In a write-up I did a while ago, I mention that this area is of great interest for me. I imagine we will have some assays to look at soon.

http://www.silberinfo.de/

Click on "Silber Index". My German is limited to "Ein bier bitte", but it does show that someone is watching SEG outside of our own little ecosystem!

Silver Eagle...

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...Advertising on Scorpio Mining's Stockhouse page.

http://www.stockhouse.com/bullboards...SPM&table=list

ADD= Not to mention Resource Investors "Juniors" Page.

http://www.resourceinvestor.com/pebble.asp?relid=75

Sold a small amount of SEG to add a little Arian Silver. Not a big move, just a little repositioning to maximize trading returns.

Catalyst: Vangaurd Shareholder promotion on the way.

Verification: Contact Keith Schaefer.
http://www.vanguardsolutions.ca/s/OurClients.asp

Jumped into SEG today. Maybe I bought some from you. Ha Ha!

duckncover wrote:

Jumped into SEG today. Maybe I bought some from you. Ha Ha!

Possibly...anyhow, I got lots and I don't mind sharing.

Champagne is better shared; we going higher!

Sold all my SEG.to over the last 7 trading days or so.

I will look for a favorable re-entry opportunity.

Bull:

Do you believe that SEG is headed lower?
What are your reasons for selling:

Thanks for the insight

If bullion trends above $1000 for gold, and $20 for silver, I think we may see renewed buying in the majors and shortselling in juniors.

SEG is definitely on the radar screens by shortsellers. I don't think any downward pressure would be sustained, however, it could be sharp and offer another great entry point.

This strategy is a gamble on my part, even if it is not frivolous.

Bull:

You've got balls to do this.

Wait................didn't someone else say the same thing
to you