OTCQX:BGMZF - Post by User
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halcroon Sep 12, 2015 11:10am
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Post# 24098741
Brent Cook, Eric Coffin and Rob McLeod
Brent Cook, Eric Coffin and Rob McLeodChris Parry, Stockhouse.com
August 27, 2015
On Ascot Resources (TSXV:AOT, Forum) / Pretium Resources (TSX:PVG, Forum):
MCLEOD: Ascot Resources is the real deal. Historically at Premier, the mine was highly profitable for multiple decades mining the spectacular grades of the recent drilling. Structurally, the ultra-high-grade have seemed complex in the modern era, but I believe their geo team has it sorted out. I used to work in the mill at Premier when I was an undergrad, and they had these historic stacks of 'curved level plans'; never seen anything like it since. High grade veins at Pretium could do something similar. Start flat, then curve vertical like a fishhook.
COOK: I suspect Brucejack makes money. I have commented on it in detail in EI. The question is, is it like Ascot where small-time miners could do really well following the HG or will taking it all work? The bigger question is, is it worth $800mil? I don't know and I suspect no one knows what is there until it is all mined. Rob care to weigh in?
MCLEOD: Risk on Pretium is they run the risk of overbuilding; unquestionably spectacular grade, but need some underground mining years under their belt to truly reconcile head grade to resource. Concern is that they want to build a 4000 tpd plant (I think), when they should start up with lower capex and indirect and scale up. Nothing wrong with a 2,000 tpd operation producing 300,000+ ounces per year... Rumour has it that PVG project financing will be announced imminently. Haven't heard where the $ is coming from. Work scheduled to commence on power line; forecast is mixed rain and snow in Stewart this weekend. September is usually 'nice' though.
COOK: I would guess all the major miners have reviewed PVG in detail. So far none have bought, that may say something.? The Chinese group came in and I would guess will again. Now for those that own a $900mil gold developer, what does it take to double the share price? There have to be better options to own for a double. I think Brucejack is a deposit that we will know what's there when it is mined over a year or two. There is a philosophical split in the resource estimation world on how statistics are used vs. geology. Farquharson is old-school miners. Snowden is young computer jockeys. I tend to go w/ the rocks before stats.
MCLEOD: On rocks before stats; most majors doing the resource DD will put the stats before the rocks with their own in-house resource guys, who are typically conservative. Too much variation in what the true head grade would be to give any major a good comfort. One of the majors that does know ultra-high grade at Red Lake has passed through Stewart multiple times over the past couple of years.
Read more at https://www.stockhouse.com/news/newswire/2015/08/27/brent-cook-eric-coffin-and-rob-mcleod-reveal-their-thoughts-on-dozens-junior#ma66BzF6AZYuLDSg.99