Corner Bay.
I think Corner Bay will be extremely profitable once the commercial production begins next week due to the high grades , high tonnage & the near surface deposit which is very economical to mine.
Andre Fortier is expecting a positive cash flow from Corner Bay in Q4-2008 itself.
Andre Fortier on CB , " To date, results from the Corner Bay property have been extremely encouraging. "At the end of June we reached the 105-metre level and have now begun to extract ore at what should be a highly productive mining ground. Output will continue to increase at Corner Bay in the months ahead, and we anticipate that this project will reach the break-even point within the next few months ."
A 5,500 tons of concentrate shipment should be unloaded next week by Oceans Partner .
Another concentrate shipment should be made by the end of November .
1. Phase I extraction of the 42,000 tonne bulk sample at CB . ( Began in Q2-2008 )
2.Phase II anticipates mining an additional 500,000 tonnes of ore grading 4.5% copper over the following three years.
3. Phases I and II are expected to generate $60 million after recovery of all development capital
( Based on internal economic studies done by Campbell and Nuinsco using an average forward copper price of $3.27 per pound and a US/CAD dollar exchange rate of $0.95 . )
4.An average mining rate of 450 tonnes per day is expected @ CB to produce 14,000,000 pounds of copper annually.
5. A 5,500 tons shipment will be made at end of Sep-2008 to Oceans Partner.
6. Another shipment will be made in Nov-2008 to Oceans Partner .
7. Development at the 105 m level at CB has been achieved.
8. The commercial production at CB is well on track & schedule & progressing very well so far .
Looks like from here onwards based on the commercial production of Corner Bay & due to high tonnage , high grades & low productions costs of only $ 1.09/lb we should be seeing a shipment every 2 months to O.P .
Most shipments will be in the 5,500 - 6,000 tons range to reduce shipping costs & will average 20 % Cu in addition to gold & silver .
