Bob Hoye and Capital Gold
Posted by commoditywatch on June 13th, 2007
Bob Hoye of Institutional Advisors who was speaking at the recent Halkin Conference.
Jeff Pritchard of Capital Gold, whose first gold pour is imminent.
And Dr Bubb of GEI talks bonds, gold and China.
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August 7th, 2007 at 7:39 pm
There are many reasons for optimism for CGC over the next 6 months.
These are…
1…first gold production began july 31
2…ramp-up indices shows that operational production will substantially exceed forecasted initial production of 44,000 oz/year.
This is based on the fact that the average gold grade contained in the stacked ore is approximately 0.89 grams/metric ton. The average grade of the 43-101 was 0.77 gms/ton. That is, the observed grade for leaching is about 16 % higher than forecasted by the feasability study. Secondly, the thruput was 50 % more ore than forecasted which means that the feed-rate of ore for leaching can be significantly accelerated.
3…a new 43-101 estimate will be available in August/07. That estimate will increase our gold reserves substantially for 2 reasons..(1) the cut-off grade can be lowered, given that the trailing POG is well above $600/oz versus $450/oz used in 2006, and (2 ) additional drilling has expanded the open pit dimensions, both laterally and at depth.
4…our first official cash flows will begin in August and those will permit CGC to move to its next development project
5..The POG is headed above $700/0z which will trigger greater investment in those gold stocks with low cash costs below the radar.
September 10th, 2007 at 8:35 pm
Wow. That was interesting to hear again, now in September.
CGLD is doing well. It is threatening to breakout above $0.47, and that should lead to a rapid rise to $0.55 and maybe higher.
And my comments at the end (on Bonds, Gold, and China), seem to now look rather insightful, when I was worried at the time that I would be embarrassed within days. Worth recalling are:
+ “China is now running the casino… They are determining the level of long term rates, not the Fed.”
+ Equities have further to fall… the markets have not yet reflected to impact of reduced credit demand (from the Chinese etc.)
+ Gold looks like it will hold important support near $640. There’s alot of cash sitting on the sidelines, earmarked to come back into Gold.