Hochschild Mining Share Discussion Threads

[rhuvaal2] 10/3/2017 11:08

All good reading and thank you.

[stevea171] 10/3/2017 10:27

Hector. Thanks. Yes, it seems the understanding they have gained at San Jose of the surface features relating to underground veins they are going to apply to the mines in Peru. At San Jose they have gone from 3 original veins to 160 now over 10 years so their geologists have gained a lot of experience and the geology of all 4 mines in Peru and Argentina is very similar.

About long life mines:
Arcata has been mined for the past 50 years and is still going strong with new discoveries and extensions of mine life. To have such a long life mine is very rare.
San Jose. 10 years of production. A long future ahead.
Pallancata. 10 years of production so far with massive future potential from Pablo Piso veins, Millet, etc.
Inmaculada. The biggest and best of them all. Just 18 months of production at 17 million Ag equiv oz year (225 million gold equiv oz) and already they are thinking of expansion possibilities if new drilling matches expectation.

HOC is looking to increase reserves and resources over the the next few years to 2020 to 5 years of reserves and 10 years of resources (just at the existing mines) to give visibility to the markets and confidence in its long term future of production at current or higher levels. All the other prospective mines in their portfolio incl Volcan at 9.5 million oz gold are extra and icing on the cake.
The prospectivity of their near mine territory is outstanding and they are hugely excited by this and all aspects of lowering costs and improving profitability even at these world class stupid prices for silver and gold.
If silver goes to $50, $100 or more as expected the value of shares in this company is unimaginable!

[pixi] 10/3/2017 10:21

Good to see the turn back to the upside, I own 120,539 and am looking for a minimum of +£6.

[extrader] 10/3/2017 10:09

Hi Hectorp,

a program of their own based on several years' study of the relation between the surface indicators and actual veins.

If you're interested in this sort of stuff, have a look at 'The map that changed the world - William Smith and the birth of modern geology'. A fascinating read, IMHO.

...In 1793, a canal digger named William Smith made a startling discovery. He found that by tracing the placement of fossils, which he uncovered in his excavations, one could follow layers of rocks as they dipped and rose and fell -- clear across England and, indeed, clear across the world -- making it possible, for the first time ever, to draw a chart of the hidden underside of the earth.

We stand on the shoulders of giants...

ATB

[dt1010] 10/3/2017 09:57

Money returning here ahead of PM prices recovering

The MINERS ALWAYS LEAD PMs.

ALWAYS.

[onedayrodders] 10/3/2017 09:57

Trade cash back in this morning

[dt1010] 10/3/2017 09:54

Nah, nothing like being a bull at the end of a retrace.

All to play for here.

[juju44] 10/3/2017 09:51

What time NFP ?

[hectorp] 10/3/2017 09:44

CEY and HOC both motoring today. Probably funds returning to HOC as well , probably stock shortages.

[hectorp] 10/3/2017 09:36

stevea
again you are coming up with the good stuff, thanks, while everyone can read all the results, few do. They are more than hinting at special software / a program of their own based on several years' study of the relation between the surface indicators and actual veins. This greatly reduces the hit or miss pattern drilling and allows concentration where the odds are stacked in favour. I assume they have had assistance from tech specialists to get this one on the go.

A significant turnaround this morning everyone.. Assuming that silver does not keep on falling , the bottom is in at HOC.

[richkid71] 10/3/2017 09:11

Give it a rest GS888 - every post is littered with 'coulds' or 'possibly' just to cover yourself in case it all goes t@ts up which 'could' or 'possibly' happen.

[goldenshare888] 10/3/2017 09:03

It's going to be ENORMOUS!!

:))

[stevea171] 10/3/2017 09:01

There's much more on near mine exploration:

"We are very optimistic about the future of Pablo. It's still a structure that remains open. We are going to continue to chase it. We have identified other structures, like this one, Explorador Marco. That area is fully permitted and that is one area where we are going to be putting additional drill holes also this year to try to pursue.

Going into a more regional map of Pallancata; hope I can explain this well. This is the old Pallancata vein. We were working on this Yurika vein when we discovered Pablo on this end.

Now, Pablo was found in an area that there wasn't supposed to be any mineral there, so that has also changed and adjusted the model that we have and has brought up a new series of hypotheses that we would like to develop.
One of the things that we are doing is we are going to be working this year and trying to see if there is an extension of the Pallancata vein on this side that eventually converges to Pablo.
The other thing that we are going to be looking for more regionally, at Pallancata, is to follow this Cochaloma structure together with this Palca structure. And you don't see it here, but underneath Pallancata, remember, we have Immaculada, and there's also a Puquiopata structure here that our geologists think that they could be related.
So, this could be 14 kilometers of a structure that does outcrop and we can see in surface that it's around 10 meters wide in certain areas. So, we're excited about this because it is very, very promising.
The idea is also to obtain the permits and try to drill these as quickly as we can."

[goldenshare888] 10/3/2017 09:00

DT, Yes, HOC is a LONG-TERM FAMILY INVESTMENT - MULTI-GENERATIONAL!

£15 - £20 in 3 - 5 years - quite possible.

:)))

[extrader] 10/3/2017 08:57

Hi DT1010,

My children's ISAs are stuffed with them.
They will be wealthy at Uni without knowing it.
That's the plan.

As a Dad who tried the same 'cunning plan' with his kids for Uni, turns out there's a slight problem : the little darlings get to access their ISAs from the age of 18....

Both portfolios did well enough to pay off their student loans (in one case hefty, as a London medic), but the surpluses weren't necessarily used as I'd envisaged for them.

Kids, eh ? Your greatest joy .....and your greatest heartache !

ATB

[stevea171] 10/3/2017 08:53

There were many important snippets of info in the HOC FY results presentation:

"Pallancata is all about ensuring that Pablo ramps up. Very important, very important to know our guidance for the year of 37 million ounces is going to be heavy weighted towards the second half of the year as Pablo ramps up during those last two quarters. Important to keep in mind as you see our production coming from the first quarter, and then it's not necessarily going to be a fourth of the guidance for the year."

"Moving into exploration. The purpose of this very busy slide is just to tell you that in the past, we have been very successful in exploration. In Argentina, when we started in 2006, we had three veins. Right now, we have close to 160 veins. How we have been able to do this? Well, during this process, we have as, most of our veins are underground and are under cover, so it's very hard to tell from surface where to explore. Now, during all these years, we have developed several techniques, most importantly, trying to find a correlation between the geophysics that we can do on surface with what's going on underground. We have worked very hard in finding correlations between the two. We believe that we have a very solid model right now to try to identify and understand what's happening underground. With these techniques, we are now applying with these techniques that were very successful in Argentina, we're extrapolating now and we're using it at all of our operations."

In the case of Inmaculada, all the resources that we know at this point are coming from this red area of the Angela vein. We have identified other smaller ancillary veins, but the stronger part of the resource and reserve and all of the reserves are coming from the Angela resource from the Angela vein. We know now from geophysics that the Angela vein could even double or triple in size, again based on geophysics. Why haven't we followed on this area so far? As you can see here, this is the Angela vein as well, it outcrops on this end, on the other end as the vein does plunge. I don't know if you can tell by the scale, but this is around 400 meters under the surface. Our idea is that as we move forward in mining the vein, it is going to be easier to try to follow the vein from the inside. At the same time, we have identified other veins in the area. Most notably, let me explain a little bit about Millet. In Millet, we already have a lot of good intercepts. These are intercepts not from 2016 or 2015, but before when we were trying to locate a major vein in the area, and we have very good intercepts."

[dt1010] 10/3/2017 08:46

Lol juju, love the sarcasm.
It's called inverse psychology.
Golden. I have a feeling you and I are going to own shares in this until the company eventually merges or gets bought.
Long term, and I mean 5-8 years, this is going all the way to £15 IMO.
My children's ISAs are stuffed with them.
They will be wealthy at Uni without knowing it.
That's the plan.

[goldenshare888] 10/3/2017 08:44

I am calling for a bottom here, preferably a hard one!

:)))

[goldenshare888] 10/3/2017 08:43

I am DT and I can tell you it is hard work!

LOL :))))

[juju44] 10/3/2017 08:42

You people are such pessimists talking the metals down. This is depressing me

[goldenshare888] 10/3/2017 08:31

Or before, as miners could well react before the bottom is reached as previously!

Are we going to see a repeat of the 2010 chart here?

If so 550p - 600p could be on the cards quickly.

:))

[onedayrodders] 10/3/2017 08:26

You mean after silver hits your $16 prediction DT ?

[dt1010] 10/3/2017 08:23

Can see this back up at 300p fast with silver behind it.

Too cheap.