RE:RE:Nordgold Still Interested In The RegionI hope they are right about the future of gold mining in FG. They may well have to take a very long term view. Here's my old wornout view (again).
The Golden Mountain, the mining project that divides Guyana https://weekend.lesechos.fr/business-story/enquetes/0600847162906-la-montagne-dor-le-projet minier-qui-divise-la-guyane-2250671.php The above is an older article (March 2019) but still worth a read if you haven’t already seen. It shows the type of pandora’s box that NG/CGT are facing with the FG mine permit.
This whole timeline is shot by approaching a year already. Even if the mine permit is granted by 2019, then we have to get all the necessary permitting/licenses which is likely to 2020 to go through all stages; therefore, first pour is unlikely to be before 2023.
Oh, by the way that is if there is no challenge to the permit in French court! This is a distinct possibility especially with what the environmentalists see as being at stake in the rainforest, so slap on another 12 – 24 months of legal wrangling should this happen.
Remember as I have suggested in the past, this is also all about the other 20+ exploration licenses and mine permits that are/will/maybe pending in FG. How gold exploration goes in FG this next decade hinges on this CGT mine ruling. Newmont, Iamgold and Barrick are all watching, so Macron and his compatriots are between a rock and a hard place; yes, we see the economic value to FG but there are a boatload of anti's who are voluble and vote (and they are all political 'animals')
Therefore, no wonder the French Government aren't seem in any rush to issue their report on mining in FG/France. Further, when this is issued they can then await NG’s EISA report, including the company's response to the July 2018 public debate. After all this we will then get the mine permit decision. Do you think that this process will occur by 2020? After all that you then start the year to get all the permits etc lined up successfully i.e., 2021? (2022-23 if there is court action).
By the way when is Macron up for reelection again? I could be real cynical and wonder if he will really want a battle going on over this FG mine in his 2021 reelection run up campaign?
As investors this is all such a shame with gold doing well and the potential for world events over the next couple of years to further impact its value. Unfortunately, It’s really hard to see anyone coming to buy CGT’s 45% interest in this mine. Even NG have no need to rush with a low ball offer as CGT SP appears to have no positive catalysts in front of it for at least 18 – 24 months.
In fact till the first spade goes in the ground there will be continual investor concerns over this mine being built (remember the negative changes that hit IAG's Camp Caiman project in FG just as they expected to be awarded a permit to start the mine build).
Nor, would i look for any respite from CGT’s Maripa and Rhea projects either. They don’t have the money to explore (nor do they need to with the state of FG gold present exploration issues) and will need to sell their AUAU shares just to keep their CGT mine prospect open re., their own admin fees; fortunately, CGT being carried by NG to first shovel stage. Notice also that is why CGT really seems to know so little about NG and FG actions; NG is the controlling mine partner and does not have to share information with CGT.
I have to admit that I am tired and no longer following this story closely, so I may be wrong on dates and stages (please correct where necessary). But as I have said in the past I would not expect much from CGT shares over the next couple of years (again, unless NG comes a calling and wants to risk $40 mill ($0.25 – 66% premium??)) on a hope that shareholders are so sick and tired… My shares well under the water shares are tucked away under the bed.
GLTA
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