For me this current discussion concerning production at the La Yesca mill and the recent private placement comes down to expectations and transparency. First, I listened again to the Executive discussion with Jim on this site from November 14th 2008. In this discussion, Jim indicated that they had done hundreds of in house tests to establish the recovery rate, that the company would shortly be self-sustaining, that the plant was full of water (does someone know what the implications of this are?) and they were training their staff on wet runs. In addition he indicated that the tailing containment pond was under construction and would be completed in a best case scenario in 6-8 weeks, that they did not know for certain how long it would take until they lifted the over burden to see how much rock was under there, and that once the rubber liner was in place they would commence full production. Second, as mentioned in a previous post, the company presentation from February indicated that full production was imminent and there should be no need for further dilution. My interpretation of these two pieces of information, and from the recent discussion here many of yours as well, was that production was imminent and that there should be no need for further dilution. The company had created for me the expectation that cash flow to fund further exploration in Mcfauld’s (an absolute most) and Mexico was imminent.
However, the fact that the past week has undermined my inferences and expectations concerning production and cash flow brings me to the issue of transparency. In fairness to the company and to other posters who have raised important points concerning the delay, it should be noted that delays are quite common to the industry. Some potential delays could be guessed from Jim’s discussion as he indicated the plant was in a very remote location, they did not know how much rock was underneath the over burden, staff needed to be trained, a rubber liner needed to be laid, equipment breaks etc. My issue is that their was no news, just a sudden PP and subsequent generic answers to pointed questions from fellow posters. My hope now with the Q&A is that the company will address the issue of transparency concerning La Yesca.
I do not know how to post questions to the company so if someone could tell me or post my questions that would be great. Here they are?
1) Is the staff trained?
2) what is the timeline on dealing with the rock underneath the overburden and for laying the rubber liner in the tailing containment pond?
3) have any new issues besides the rock underneath the overburden and laying the rubber arose to delay movement towards production?
4) Have any new tests changed the previous evaluation of in-house tests of expected recovery rates?
5) will the company be self-sustaining in the near future?
6) how is the Ground Gravity Survey on the East block of Mcfauld's proceedings?
