Great discerning post

“The placer should be in operation soon, bringing in, we’ll say, $50,000/week on average. That will fund the beginning of building the MC setup. You can move a lot of dirt for $50K. In March, Atzec and company should come up with $4,000,000…in cash. That’s enough to develop everything. The tax money you memtioned is about another 1/2 mil. ”

BUT!!   placer  will FIRST fund  the high grade  Julio 2  shaft and  MILLING that  will fund  the heap leach  and  is  exactly  what some   smaller  than 50%  the  JV bargaining  offers  for  around  $5-7 mil upfront , not  mess  around  cash. And yes, difference  is  about  3 months time.  If  he  gives it  away for  less  than  true  value for just  90 days start?  I’ll jump him 1st!  8

 Today at 11:44 AM

Caught  him driving  to Placerville. Will go back Friday and  stay until placer is  running with  daily  revenue  and a decision OR not means  a JV or  not  a bad ,  tho delayed,  100% Mexus operation.  Sorry, best can figger.  Still  least 2 others  and major in mix.  Silly   blast permit  is a  legal move you make  when is  an  actual need. So far ATZEK is satisfied  but  well aware  clock ticking on taking back  half San Felix in Mar not  paid $4.1 mil in full. Timmins  San Francisco mine is  not  a neighbor, about  a long  hour’s drive E  on   Mex  2  at  Santa  Ana then short  way  S on   Mex 15 coming down from border on way to Hermosillio .

I’ve been following  the  Caballo Blanco project  for  many years  almost  directly  on the  Gulf  above  Vera  Cruz.  Pretty  well drilled  but NO Environmental  Impact  Study  approved  so a long  way to go .  Goldgroup, the  seller  tho has  a mine in  Sonora and  their blast  permit  took about  3 months early  last year.  Cerro Prieto Project is also on Mex  2 but  well E near Douglas AZ.  Still a view on how  approval is  granted. March could be  the approval  along  with funds from San Felix  sale. BTW  PT says  pond  and  placer  move  was   the  B brothers, himself  and 2  equip drivers  alone. Rest of   crew  there  more  pick and  shovel type .  Just  as there

“The Environmental Impact Statement (Manifestacion de Impacto Ambiental) and the Authorization of Change of Land Use (Estudio Tecnico Justificativo para Cambio de Uso de Suelo) for the Cerro Prieto project have previously been granted.”

Same have been granted  at  Rancho. 8

http://www.goldgroupmining.com/s/newsreleases.asp?ReportID=627361

Today’s  mail

• don….
  …saw your blogpost re caballo/timmins. yeah….waaay bigger and with more geological info. assuming it’s accurate, timmins has a decent idea of a minimum they’d be getting for their 25M in cash and stock, which is just not the case at sta. elena as of now. also….assume timmins will be exploring other parts of this vast acreage for further exploitable gold/silver…it’s indeed a huge tract. 
   
  still….8000 acres isn’t peanuts…and  if pt is asking in the neighborhood of 7M for 49% for what for now seems like a similar-size deposit with easier processing, seems he’s offering a reasonable deal. and of course, i’m assuming that any deal will have “stepped contingencies”, such that deal would be voided in the event drilling does not corroborate what pt has stated is there. buyer will surely want those kinds of conditions in the deal….
   
  anyway…guess we’ll soon find out. for today, a bit of selling pressure likely due to last-minute tax-loss selling…..
   
  hopefully far better things ahead in 2015…
   
•  Answer
• Today at 2:47 PM
  NOW, what  could PT do with $84.4 mil?

  • Initial capital costs estimated at US$84.8 million, plus additional US$53.5 million of sustaining capital costs over the LOM
  • Total LOM pre-income tax cash flow is US$386.3 million, net of pre-production development and sustaining capital of US$138.3 million

  Is  just  a ’12  PEA and  still limited drills  on total area with most inferred. But  shows  what  gets  taken on.

  ” The preliminary economic assessment is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The Company has not made a production decision and no assurances can be given as to when production may commence”

Timmins would have been wise  to have  taken  Mexus  property.  Greatly larger  area with high sulfides problems  and much weaker mineralization  a LONG ways  away far S Mexico and  certainly  no more  developed since  2012.    Very  similar production goals but MUCH harder  to produce with need  to oxidise  for  heap leach and  apparent SOME oxidized pockets for milling extraction.  Rough half  gram /ton over  all.  Near  $800/oz  to produce.  100% for  $10 mil and  16 mil TGD  @ .90. TGD is   near  $25 mil.

http://www.goldgroupmining.com/s/caballoblanco.asp

So far  both  Q&A I’ve answered after  talking and  asking recent past with new  % for  family  for  increasing  placer  run and 8K is  correct area  size. Guess  should move  on  and  tell a  Lout  why he  doesn’t  spend  money he  doesn’t need  to for  permit  can’t have used  and  hasn’t yet needed.  But now  is  from  Mexus mouth not mine. Hope was answered  as cheap as  from me saying same!

Sunny Thurs AM  at  the  lake . Now  just light  dusting  melting  in sun, roads  salted and clear.  BUT was  a  white  Christmas.  Tahoe  and  I guess  all Caesar’s properties  have real problems and  SHOULD  have  sent  email telling  guest  what  t expect over Christmas! Have  to seriously  consider not going there  again until problems causing  layoffs and shutdowns are  resolved. And  we love  the place where  were married in ’71.  Rather  stay at Peppermill and  there now  on Sat 27th,  treated  very  well thought  not top  Chairman Level but  just2n tier   Diamond  where  are  7 Star  top level at  Caesar’s.  But  are  over 50 Caesar’s  worldwide not just  one real nice  like Reno  P’mill.   We’d  then just  drive  up  to lake  for  a  days use of  benefits. Did  that in  May.  You usually know  1st thing  to go is  Video Poker  pay lines with any  shuffle  of  games.  Will require  rethink of  world  view!

I think PT’s  fully  explained the details  of holding  a blasting  permit  and needing  24  hour  approved  security with frequent  inspections  by  the  military and  specific  to the  site .  Right  now  is  still a  3 barb wire  fence around  it  all. This  everlasting jerko  wants  to have  done  that  he  says ” last  4 years”.  Until you  have need  to set  a charge you  don’t  really  want all that requirement  met  and  paid  for. As of yet  since before  thoughts  of cleaning  out and opening  Julio2  in mid  2013  the  only  blasting even considered  was  at  San Felix and never  done as  was  no crushing  facility just  repositioning  ore   then sold  totally  last March.  Keep those  great  thoughts  coming,  Lout! The  answer,  BTW, is preparing  to open the  rancho  for mining with all permissions and  guess  which is  the  final permit  needed to remove  ore  for  processing  AFTER loose  rock and  soil  for placer  from the  stock zone which will need  need  no blasting  ever.  I think it  also answers  the  same  loud  voice  asking  why  haven’ t  they reopened  the placer.

So here’s a fine  biz plan. As soon as  the rancho rights  were  under  contract  much before anything  was known or planned  in March 2011 we  bought a  big  safe  and put  a few  $100K inside and  built  a  secure depository and  hired  guards  to  be  24/7/365  even though the  money  was  spent  and   we  were  selling  shares  at  a penny.  Now  we  can open the  empty  safe  and  thank the  careful guardians while  spending non-existing  funds. But  since  stupid is  as  stupid  does let’s  ask the  boss  why he’s  not  as  stupid  as  me?  8

“Yeah I asked since 2011 we were supposedly applying for a blasting permit at Julio and here it is almost 2015 with still no permit. What have we been doing the last 4 years?? “

His comments I hear  now are  a  go it alone  path again using  blast  permit  in  January applied  for  to mine  Julio 2  with ball mill. Will plan on  same  old  20 tons  hoist  with all ore  over  .45 oz  to  5.5  oz  seen there.  Avg  may  be  2.55 oz  means  up to 50 oz  daily.  for  $60k before  cost.   Could  earn own $5million in time until $4 mil due in  March to set  up  leach by selves. Seems a  really  good  bargaining  point about  now .  Want  in? Get  up to speed on  that value involved. 8

Snowing in  Tahoe  at  noon.  Nothing   on ground  yet( pretty good  snow fall by 4 PM, none  on U 50 but  sidewalks  white. Pretty  but  slushy )  but  hills are alive some from earlier  in Dec. Not  yet  crowded  but  will get  so as always for  end  week and  NYE.  Met  Walt Klenhard   from Sacramento for a  chat  as  been up to Comstock  for  a  see.  Family’s   in usual   Harvey’s top floor  end  suite and  connector.   Now just  wait  out the Jan  must wait  and  see what’s  the  dealing. Been about long  enough for my  butt  to wear a groove  in  this bus bench. Oh, ho, ho.   8

Once  again sounds promising but  major  IS taking until Jan for  an offer and  DOES involve  at least  $5 mil for  a  drill  program for planning  reasons.  I  assume  there  are  other  funds involved  for the JV  to claim a  share if  agreed.  Financing’s said will be involved  after  drills have   proven  up resource.  2nd   and  separate  negotiating   he has been speaking  about seems  to be  the  Ures  claims  with other  owners  I assume  means Sonora   mine  operators.   It ‘s been the  mine  crew  now on  holiday moving  that  100K yds.  in  Dec so far.  Perhaps  many  as  15/25   workers so we  are paying  the bonus.

He’s finally  announcing  officially what  he’s been telling me  for  several years that  an organization  for  Mexus  USA  will  follow  the  need  for  one.  Until  now  one for Mexico  in Caborca  has been more  vital  until some  funding  looks to be  at  hand for more  than offer  to assist.   We   now again have  some involvement from  Alaska  down the  Pacific  coast   into Nevada and  two distinct  areas  in Sonora Mexico.  A few  tricks yet  to teach the pony.  Record played  back says distinct  “Paul aint  dead!” 8

His comments I hear  now are  a  go it alone  path again using  blast  permit  in  January applied  for  to mine  Julio 2  with ball mill. Will plan on  same  old  20 tons  hoist  with all ore  over  .45 oz  to  5.5  oz  seen there.  Avg  may  be  2.55 oz  means  up to 50 oz  daily.  for  $60k before  cost.   Could  earn own $5million in time until $4 mil due in  March to set  up  leach by selves. Seems a  really  good  bargaining  point about  now .  Want  in? Get  up to speed on  that value involved.

You can see  the old  placer  set up when below   in the  Placer  and Hard Rock video from ’12.  One  view  across   flat  from ball mill to large  orange  frame

What’s  really  apparent  is PT’s a  fast  working dirt moving  fool.  Normal high cost  miner ‘d  have 200 out  there  doing  the  same  stuff.  Imagine  is no more than family,  crew foreman,  old , small paid work crew,  and   perhaps  Butch along as a  can do anything needed  guy.     Think he will be back for  Xmas  and  back down   after  New  Year. May be  in Reno area  next  week, not  sure but  Adam said  something may be  his  own family.  I’m in Tahoe  Harvey’s Tue-Sat  and Reno  P Mill till Monday 29th

Some  more  evidence  bids  are not  yet considered  good  enough  or need  to be  prodded  some  is  explosive  permit  which we  held  with JV and  could be a  secure  remote  site. With a  new Sonora  partner  holding  one  would have been no need  so  held  off  until now. We  know  steps  needed  as  a previous  major JV  holder and  are  now   into  2015  with  holidays  involved and  frankly  I’ll opt  for  100%  by  running placer for  some  cash operating  to wait on  Julio  2 come  Mar.   Takes  guts  but  tell the  major  we’ll  just  be  their rich neighbor  and  wave  on  way to the Sonora  First National Bank. Fuel’s  1/2  a  year  ago when  selling  San Felix.  POG near  same.

Can see is now above on ridge bit SW as hills run from valley SW to NE highest on W side of Mex 2. New larger dug ponds are sited at old placer screen run with old loading chute still below. Mill is the iron posts sticking up at R parking area. White semi trailer is generator. White Pick Up is by the current well. Seems to be planning some serious placer starting Jan.

Had on mute  so watched no sound. Yes, doubled placer  screen is  on loader below  to R of  water truck, Sluce  will be  set  up  on  red  frame  down to settle  pond.  Was  from L to R  little incline, now  from Up to Down steep.  Not  as  far away  as was once  planned with pads later  so’s to use  the old disturbed  area  no  reclaim  needed.  Sounds  to me is a  firm plan set to go alone  if  not a  decent  JV offered.  Cash  from placer  for  fuel and  steel. Apply  for  own  blast permit    in  Jan after  holidays  with army  approval and  dig   big  cash out  from Julio 2   adding  to San Felix  pay off  in  March.  Someone’s  going  to be sorry  never  up to scratch since  Oct.

Blast   explosive storage  is granted some  period after applied for and  renewed  annual after inspection.  Mexus  private  family owned    has  NO Ejido  concerns  which caused  delay of  about  6 months  for Metalica  back in   Oct ’05 to Feb  2006. Fresnillo had  same with area    residents  blocking  last year at  Noche Buena and  few others  I recall.  Seems another  damn good  reason  for  a  reasonable JV offer!8

http://www.businesswire.com/news/home/20060209005687/en/Metallica-Resources-Reports-Restriction-Lifted-Blasting-Permit#.VJSHz8CdJU

http://www.advfn.com/news_Fresnillo-Cuts-2013-Gold-Production-Target-Hit-by_60330598.html

Personal good  ear bill of  health today.  No operation  need  again just long  term   care program and finally let the  drum operate  w/o  a  tube. 2  weeks  back still a  clear  hole with tube  fallen out . Today a  much better audio test over  50%   mid  range  ( voice range)  but as pressure   did not hold is  still a  pin hole non  visible  opening. Did   not  want to scrape  on  drum,  rather  simply  heal totally.   Dry powder antibiotic  blow in now  comes   out as  a  grainy interior  not  wet and  nasty.   4 months.  about  time. May even soon get head  wet  and  swim an hour  after  eating when mommy  says  OK.

I’m pleased  we  will get  a  response  to “Ask CEO” some  like Comstock’s  Corrado but  don’t  expect  much more  than my own “Paul said”  and    until my  slant gets  added is  still not  the  whole  story of  stuff  still “can’t  be  said  aloud”.  Is  just official line agreed  to for publish.   PT’s  simply  not  a  talkative  official blowing  own horn and  will take  more  than  I believe  Dent  possess  to draw more  than “that’s  the  way it  was  so that’s  what  I did”.   May even soon  agree my  way was  lot’s  more  colorful in what  can’t  be  said  but  was. Bit  early  still  but  both  pics  and  “CEO speaks”   E-mail came  out  and ONLY Ask trade  of  entire  day was  11:25, 20K…. $O.03.  Rest I guess  our  Exxtol dumping for  that  $8600 Yugo at  .027 Bid.  So much for more  and  more   info demands.  Told  you  so long  time back.

what  goes  on  as he  waits  a  decision. Major  requested  addnl time  so began   other negotiations   and began to do own  development  of placer   site  and process already has  approval.   As  said  is now some higher  level  above  ball  mill and  is  constructing    two ponds for  clear and  waste  water  for  placer now  very   well gravity  situated  high angled for  faster flow.  Will NOT now be  on the  same level was planned  for  initial heap site   with MC ponds   down below  about to about these placer  ponds,  5 or  so   for  reservoir  source and processing  much much larger.   Leach ponds planned are shown as  similar  at  San Felix.   Mill remains  at old lower  site  just above  valley  and  quartz stock zone ( placer  ore)  and  shear  zone   ore.  White  quartz outcrops  of veins  run up to well above and  highest  on  rancho hill tops. Entire operation  has  the height  advantage above  to working  areas  lower with  access  direct  to Mexico 2 all directions.   Valley  floor  is  Mexico 2 seen as long  level  just below  distant  border mountains  runs  L to R near  top of those  pics.

Entire  year past  POG’s been in  $140 range  bound $1140/$1280. After  labor   fuel is  biggest  expense  now  in near half $110/$55. Production  cost  must  fall in line  as  profit  climbs.  We’ll NEVER reach gold independence   but it is   stored here mostly for  safety.  8