RE: RE: RE: Take Out TargetI agree - they might have the wherewithal to carry this through to production, but the way they are drilling this thing up suggests that they want to grow the biggest resource they can as quickly as possible in order to maximize the results of the BFS and put a bigger price-tag on it.
Initial feasibility studies suggest a target of greater than 200k ozs per year. Not that Agnico would necessarily buy something in Brazil, but you look at what appears to be happening with their Goldex mine and you have a very relevant example of a major that is going to need to replace 180k ozs of production.
With low cash-costs and land claims on basically the entire district, the potential at BSX would be a very nice producer for someone wanting to establish a strong presence or add to a presence in Brazil.
The dymanics of the price are different, but look at Eldorado's acquisition of Brazauro. The prime target there was Tocantinzinho which at the time had an estimate of only 2.2m ozs at a grade of roughly 1.1 g/t. BSX is very likely to be twice the resource resource and of comparable grades.
It would be a very nice complement to what Goldcorp typically looks for, and with a number of their mines at less than 2m ozs and much lower grades than OV or GS, it would be a nice addition to their operations and with Penasquite now onstream their cashflow is going to jump.
eebler