Questions about Cascabel and Fruta del Norte
Both Soldgold's Cascabel and Lundin Gold's Fruta del Norte are located well below the valley floor, occupied by flowing streams, in active tectonic terrain in the South American cordilleran. There may be a costly mining problem-namely, dealing with fractured bedrock and high pressure, high volume water inflows.
http://cdn.ceo.ca/1cf591k-Cascabel.pdf
http://cdn.ceo.ca/1cf59h2-Fruta%20del%20Norte.pdf
For background, two examples are the old Tulsequah Chief mine in Northern BC, and Freeport's Grasberg porphyry copper-gold deposit.
In the case of the Tulsequah Chief massive sulphide deposit, Cominco stopped mining when they hit a level below which there was no adit or portal access, allowing for drainage. Attempts to pump water inflows below or near the valley bottom failed and the mine closed, leaving much ore behind.
Grasberg ore bodies are all now accessed by portals above or near the valley floor, allowing for block caving operations, water drainage, and large scale underground mining (See attachment).
http://cdn.ceo.ca/1cf2v5d-Grasberg.pdf
Although early days for both $LUG's Fruta del Norte and $SOLG's Cascabel, I would like to see results from geotechnical work, including water monitoring wells, ground water flows, ground water draw down and recovery rates. Mitigating water problems can be expensive, and in some cases, render existing or remaining resources uneconomic.
I have no position, long or short, in SOLG or LUG.
