Franklin Mining’s Escala Mine Looking Good.
First:
You would have to live under a bridge to not understand that commodity prices are in an upward trend. Greater efficiencies in mining is becoming a critical factor as resources become harder to find and extract and average ore grades continue to decline.
Second:
Perhaps a more obscure underlying reality of the mining industry is the fact that the great mining educational institutions of the world have joined with the great mining companies of the world in research to improve efficiencies in ore extraction.
Third:
FMNJ is on the ground and under the ground at Escala. They have started the mining process. The Escala Mine has an estimated 200 tons ready for immediate shipment to the processing plant. November’s production is now projected to be in excess of 450 tons. FMNJ understands the issues associated with costs in mining Escala. (Please see note below regarding FMNJ’s Escala contract.)
Escala’s main mine shaft is looking good to go and the other shaft which is smaller, about 25 meters deep, is looking like they are ready to produce quickly.
Ore extraction has become more efficient. What was considered a novel approach two years ago is now in application. New processes boost the efficiency of mining operations which has a proven potential to improve the bottom line of mining companies.
A spokesperson for BHP Billiton noted that in large mining operations, a two to three percent improvement in the efficiency of resource exploitation can increase the life-of-mine value by up to $100 million – and this gain is often available simply by changing the order in which material is extracted, without requiring any investment in new equipment or facilities.
Clearly, FMNJ is not of the size of BHP Billiton. However, the same efficiencies that impact BHP Billiton’s operations have the potential to impact FMNJ’s operations with increased efficiencies and expanded ore production.
FMNJ recently noted that two other mine sites, each about 50 meters deep, are not yet fully explored but will be worked beginning in about a month.
BOTTOM LINE: What we are looking at is the potential for increased productivity based on improved ore extraction processes and better than expected reserves at Escala. (Please see notation below on the FMNJ Escala contract.)
Source:
BHP Billiton Press Release and
FranklinMining, Inc.
8024 Vantage Drive, Suite 680
San Antonio, TX 78230
William A. Petty
Chairman, CEO & President
Franklin Mining, Inc.
8024 Vantage Drive, Suite 680, San Antonio, TX 78230
210 – 525 – 1273
About the Escala Project: Comprising three separate mining applications, COMIBOL’s Escala Mine concession totals 2,000 hectares located in the Sud Lipez Province, which is near Bolivia’s border with Argentina. Franklin Mining, Bolivia S.A. has been awarded a contract to mine 500 hectares known as The Escala Mine. Escala II, Escala III, Achacana and Aguas Escala are mining applications currently assigned to another mining company.
Forward Looking Statements: The information in this release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectation or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, fluctuations in foreign currency exchange, the impact of competitive services and pricing, or general economic risks and uncertainties.
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