Big Daddy exploited first?Hi everyone,
To follow up on my previous post a few days ago, I am thinking that KWG might actually be looking at exploiting the Big Daddy deposit. Their recent PP raised a significant amount of money and it was clear that CLF was not in on it since it took them a few weeks to let KWG know that they would elect to purchase shares to maintain their 19.9% ownership. If they had been that close and in good terms, KWG would probably have announced in their initial press release that CLF intended to subscribe to their PP.
I am unfamiliar with the terms of the agreement between SPQ/FWR/KWG but the advantage of BD over Black Thor and Black Label could be that the ore could be sold as is without developing too much infrastructure (mine and ship) and make 'easy' money while actually building the infrasctructure to exploit the other deposits over a longer period of time, allowing to defer the large investment further in time (concentrator/smelter). If the majority owners can decide, then SPQ and KWG might force this development by finding a chinese buyer for the ore. In this scenario, an open pit with rail and storage piles with minimum equipment would do it. Therefore, the BD deposit could be the key to start up 'cheap' operations in the ROF with at least a 30 year mine life (@1M MT/year of chromite shipped by rail to a port).
The Ontario and Federal gov'nt will surely foot most of the bill for the railroad...
IMHO...
Have a great evening!
SB