GREY:CLGRF - Post by User
Post by
cre8valueon Aug 23, 2013 6:27am
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Post# 21691874
Claude/Kirkland - The Growth Path
Claude/Kirkland - The Growth PathWith things starting to progress at home base, it is time for Kirkland to look at the growth opportunities while prices are dirt cheap.
Kirkland is projected to produce between 150,000 and 180,000 oz this year.
With additional employees this should ramp to 200,000 oz next year.
Opportunities to consider Now:
1. Buy Claude Resources - For about $30 million in upgrades Claude can double mine capacity to 100,000oz with the high grade discovery at Santoy Gap.
(That would put Kirkland at about 300,000 oz in 2 years)
2.Claude Resources owns the Madsen high grade gold mine.
Kirkland has all the right players to refurbish the Madsen property to add an additional 100,000oz /year. With all the lessons learned, the Kirkland team can to do it, if it can be done.
(That would put Kirkland at 400,000 oz in 3 years)
3. Consider merging with Rubicon - Ruby has $355 million in tax credits that Kirkland can take advantage of now. They are both in Ontario and are being run by X Goldcorp guys. This should be a great fit. Ruby would have access to the cash needed to complete the mine without any stock dilution.
(This would put Kirkland at about 600,000 oz in 3 to 4 years)
I don't know of any other company that would have this type of growth profile. All in Canada and high grade to boot.