Ecuador Gold

[raddoc]

I have two guys from Canada that are in Ecuador. They will be reprocessing tailings from a gold processing plant in the Andes mountains. Is this a legit. process? They want me to invest.

 

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[Hoser John]

REPROCESSING TAILINGS--so ya wanna try for the crunmbs off someone else plate that were leftover from someones else plate?? CAVETA EMPTOR- John

 

[shamaalah]

Maybe...

With gold at the levels it is now...

The samples show enough gold per ton within the tailings to make it worth while.

Labor is cheap.

Much less labor intensive than hard rock or placer gold mining.

Ecuadorian ore processing plants and very inefficient.

I will let you know what happens.

Are you going to be onsite?

 

[shamaalah]

I will be there for the commissioning of the plant, if I invest, that has just arrived form South Africa (mid June). I have already taken a trip to Ecuador to meet the owners (father and son) of this company and the owner of the ore processing site where the reprocessing will take place. I have no concern as to whether or not it's a scam. The site has two large retention ponds that are filled with the tailings. Each pond is about the size of a football field in surface area and about 20 feet deep. The plant is digging a new pond as these 2 are full.

And these tailings consist of....?

 

[shamaalah]

The crushed ore from the ore processing plant. The best way I can describe it is a thick sandy mud.

Thick sandy mud? doesnt sound too difficult to process. Any preliminary tests/samples?

 

[shamaalah]

Yes..

Don't have the numbers off the top of my head.

Gonna upload a pic. and look up the sample results in a bit.

What type of equipment you plan on running?

 

[Hoser John]

I smell rotten fish

 

[TheRandyMan]

If you are not exactly sure how this whole thing works...you need to reconsider investing. This is not rocket science. You should be able to understand the process with no problem.

 

[TheRandyMan]

So, based on the top end of the range at 0.2 grams per ton...You would have to process 155.5 tons to get 1 troy oz....or the equivalent 1866 tons for a troy pound of gold.

If you get the bottom end of the range at .07 grams per ton...You would have to process 444.3 tons to get that same 1 troy oz....or 5331 tons for a troy pound of gold.

So, the next question I would be asking is...how many tons of material can this machine process each day? What are the estimated costs of production per ton?

If you compare those figures with the numbers above, it should quickly show if this is a profitable endeavor...or not.

 

[shamaalah]

I 'm sorry. The values are 0.2 gpt low end to 0.7 gpt high end...not .07

About two million tons of tailings to process.

OK the math is still the same...I would do the calculations based on the worst case scenario of 0.2 gpt. And even then I would cut that down to 0.1 just to cover a possibly artificially inflated estimate. my2cents

 

[TheRandyMan]

Ok...if we take that figure of 2,000,000 tons to process and divide by the 155.5 tons processed per troy oz recovered, we get a recovered 12,862 ounces of gold ...

Dividing that by 2...we get... 6430 oz... that would be the .1 oz per ton scenario.

You still need to know what the anticipated costs per ton of processing or costs per oz recovered will be to determine if this is a good investment. If you get that number from the promoters, you need to be skeptical unless you can find some proof of some other operation making recoveries at the same rate in operation right now.

Might be worth checking the internet and see if you can find an operation that is using that equipment and see what their recovery costs are in their operation.

 

[shamaalah]

Ok...if we take that figure of 2,000,000 tons to process and divide by the 155.5 tons processed per troy oz recovered, we get a recovered 12,862 ounces of gold ...

Dividing that by 2...we get... 6430 oz... that would be the .1 oz per ton scenario.

You still need to know what the anticipated costs per ton of processing or costs per oz recovered will be to determine if this is a good investment. If you get that number from the promoters, you need to be skeptical unless you can find some proof of some other operation making recoveries at the same rate in operation right now.

Might be worth checking the internet and see if you can find an operation that is using that equipment and see what their recovery costs are in their operation.

Yep

 

[shamaalah]

Thanks for your input everyone.

Much DD to perform.

One other thing, if that pond consists of a quicksandish slurry mixture water sand and mud, you can count on that gold to be sitting at the bottom of the pond...meaning...youll have to almost completely process the pond down to a few inches just to even start seeing some color...i could be wrong

 

[russau]

just remeber what happened on TV with them Oregon guys in Alaska! good intentions, but went broke from lack of planning/knowledge!

 

[shamaalah]

I agree with most of the gold being on or close to the bottom. All samples were obtained at the surface (.2-.7 gpt).

Well in that case then its feasible to say that the deeper you go the higher the gold per ton ratio. Its possible youll see up to 1.0 gpt. Whats your $ per ton investment if you were to divide it up?

 

[TheRandyMan]

Using the .1 oz per ton figure of 6340 oz, your gross return on investment BEFORE EXPENSES would be $235,800. (6340 x .04 = $385,800 with gold at $1500 per oz) - (initial investment of $150,000) = $235,000. Now, if your share of the expenses is more than that amount, which I would think it might be, it would not be a good investment given this scenario.

Of course, if you do better than .1 oz per ton recovered...it all changes

 

[shamaalah]

Using the .1 oz per ton figure of 6340 oz, your gross return on investment BEFORE EXPENSES would be $235,800. (6340 x .04 = $385,800 with gold at $1500 per oz) - (initial investment of $150,000) = $235,000. Now, if your share of the expenses is more than that amount, which I would think it might be, it would not be a good investment given this scenario.

Of course, if you do better than .1 oz per ton recovered...it all changes

now hold on there...we dont know what type of return the man would be happy with. as a general rule of investing any where between 18-23% ROI is considered decent...But personally, If the option was available, I would go the other way around with it and dredge the pond myself and offer the owners or whoever a cut. A 12 inch dredge would make short order of those tailings and the intial investment is only a fraction of $150,000.

 

[oragonads]

just remeber what happened on TV with them Oregon guys in Alaska! good intentions, but went broke from lack of planning/knowledge!

Speaking of that show, the guy who I had bend my sluice for me told me that Dorsey came into his shop one day and told him that all the gold they showed they found was actually gold out of Oregon. They didn't find anything. He said the claim they were working on had already been worked over.

I guess that's why there moving onto a new claim for next season then

 

[shamaalah]

Well, I hope those jokers do a bit better this season...couldn't do much worst.


As for the tailings project...I think I am going to pull the trigger on it. It is money I don't want to lose but can afford to.

Based on the project timeline, I would think that I should have a good idea what my ROI will be by the end of the third quarter.

I will keep you all posted on any milstones as they occur.

Kings to ya

 

[rioblanco]

Been down there myself, heading back...........but wouldnt touch it with a ten foot pole.
Really , take a step back and check it out.
What happens is the gold is ALWAYS siphoned away leaving the investors empty handed................