Wednesday, April 1, 2009

Updated technical report - Lamaque

The report has been updated to include the additional ounces (recently published) - 700,000 or so. It now reflects the new Lamaque 43-101 total - 5.3 million ounces. Report is now on SEDAR - March 31, 2009 filing date.

3 comments:

production05 said...

I did after all locate pictures of the Lamaque assay lab. This updated technicial report has 4 pictures (pages 107 to 110).

Anonymous said...

I looked on SEDAR and found the report and pictures that prodution05 is referring too. The report is very impressive and should be on the must reading list for all serious investors. Century is no mere amateur by a long shot and actual should be given some overdue respect.
Here is what we have in the Assay Office. It is a combination of the old being augmented by the new. Shown is the old is traditional fire assay capable of measuring 1 part in 10,000 (Wikipedia) limited by physically weighing the finished bead @ 1 mg representing 1 oz (troy) / Ton and the Assayer’s selected flux. Century has fixed the problem of weighing the bead by dissolving it in acid and then measuring the effective weight by using an Atomic Absorptive Spectral Photometer i.e. AA Machine to measure the ppm’s. Realize the limits of an AA Machine are .001 ppm or 1 part in a billon (Glover Pocket Reference). This will solve problem#1 but not problem #2, the Assayer’s selected flux. The Assayer’s flux varies depending upon whether the gold is in the oxide or the sulfur level (deep) as well as the companion metal contaminants (Telluride – nasty). What happens is the gold gets trapped in the flux and escapes unmeasured. Additionally, we have to address the logistics issue of jumping from 700 assays per day to 1000 assays per day. WOW!! So without going to the DFC (Denver Fire and Clay) web site, I estimate $3.50 / crucible in mass bulk. Now, we are talking $17.5K / week and more than likely something like $20K / week. Why? Per the report mentioned earlier - Cupules are made on-sight. – Cupules used in London mint are required to dry for two years. Bottom-line: There are logistics’ issues here that will require an outside purchase. While on the subject of logistics, let’s talk about the furnaces needed to support 1000 assays per day. Assume 2 hours per assay including the cupules’ end and an 8 hour shift. WOW again!! This amounts to 250 assays per hour. Trust me on this, the furnace room shown in the picture simply won’t support this level of test. Now, let’s also talk about another $1K / week (conservative) to pay the electric bill. So, sticking with the traditional fire assay on steroids to measure the bead will end up costing us $21K / week for a questionable number – due to the Assayer’s flux selection. Hey, I like nostalgia too but this is ridiculous.
Using the pure AA Machine approach sample preparation remains the same as in the previously mentioned fire assay. However, once we have the ore is in powder form things change. We start by dissolving a known quantity of ore in a known volume of liquid mix and/or heat to dissolve the gold into solution. Next we draw the fluid through a tube into the AA Machine. A digital readout tells us how much gold is contained in the ore. It is quick serial in nature and where the industry is going. Calibration is usually done by zeroing with de-ionized water and scale calibration through the use of a known gold solution standard consistent with the anticipated sample range.
So, Peter, what would your ‘humble opinion / solution’ be? Answer: Get weaned off the fire assay pyridine!!
• Upgrade the sample prep area with a heavy emphasis on reducing cross contamination. There is good equipment coming out of Germany as well as Bico-Braun. What is shown in the pictures is a far cry from ‘state of the art’.
• Do not upgrade the fire assay capability. Rather use it to support the numbers coming off a pure AA Machine result. If discrepancies show up assay the fire assay flux to resolve the matter.
• Have X1.5 the anticipated volume capability of sample prep. Mechanical failures CAN BE VERY COSTLY.
• The entire process needs to be designed so that no one individual can ‘cook the number for whatever agenda’.
• Have a minimum of two AA Machines.
• Use your AA Machines so that the data is recorded without human translation of the numbers. Use sample numbers that are coded and not associated with a sample description. Bar Codes attached to sample bags provide a very auditable trail that can be retested later. Inevitably it will most likely evolve to this any way. So…..why waste time and money getting there?
• Give serious consideration for using the AA Machine to look at multiple elements and randomly looking at “everything”. It is beyond the scope of what I hope to accomplish here or to define “everything”. But, I would be willing to go off-line on this one because it is a ‘very fascinating’ subject.
• Never ever use threshold valuing. Rather record the actual value. This is cheap trick used in process. Why? So no one then has to explain discrepancies that ask embarrassing questions like, “Where did the gold go?”
• Design all process rooms to be able to be double in size with no major logistics issues.

I am not in the AA business. I am CME investor and proud of it. - petercz

P.S.
Notice, you don’t see Wagoner investing in GM like Peg and other CME management did when the going got real tough. At the .02 level, we heard the ‘affix bayonets’ command that really tested our collective investor intestinal fortitude and desire to survive. For me, who got in @ .53, I saw the image of a mouse extending the single finger salute to the outstretched talons of a bird of prey soon to engulf said mouse. It was ultimate act of defiance. Without hesitation, I along with other investors laughed at the notion of a hostile takeover. Here I am now weeks later raising an additional finger in the V reserved for victory. This is appreciated even more since it came out of an act of defiance. I am still a ways from where I and a lot of other investors started from but we will in the end be rewarded.

Carib said...

Petercz, that was a lot of good and informative information and thanks for sharing your thoughts.

Perhaps it might be worthwhile to email Century directly with your comments. I'm sure that Brent Jones would pass them on to the appropriate technical personnel.

If you'd like to become a blog member so that you can make original posts (rather than comment on someone else's post) send me an email to centurycarib@gmail.com.