Er @ PDAC Spoke with Mr. Robinson for about 20 minutes at PDAC and I'm optimistic about this year. I've been in ER for 9 years and experienced the roller coaster ride but I know ER will survive the current climate...something I'm not sure about with some of my other gold holdings.
Anyway I offer my recollection of the conversation:
- recent Goldcorp investment shows G is very interested in the project and likes the direction that exploration is taking. It will have a 7,000 ton per day plant that will need to be fed and ER is just down the road. Don was pleased that G wanted to top up its investment and confirmed it has never sold a single share. (nor has Don) G no longer has a right of first refusal, something that Don refused to give. This means that when the time comes to sell the doors are open to all interested, which I suppose could lead to a bidding war.
- His objective is to prove ER can support its own plant and it won't break the back of a buyer in terms of capital cost. You may recall the company was up for sale two years ago, but Don pulled it off the table after some new discoveries were made. He feels the project is significantly better now than it was when he shopped it the first time and doesn't know when the for sale sign will be put up again.
- Grade is far superior to many other projects. His objective is for a grade of 5 plus grams for the underground and open pit combined and a mine life of at least 10 years with low capital startup costs.
- E south appears on the back burner while Don concentrates on his main deposit. I recall him saying he is optimistic but called it a "lottery ticket".
- Eastmain Mine: a 10 year exploration program. The road will be finished by the end of this year.
There were other things, but my memory fails me...resource update coming along with an economics report. PDAC was as busy as before....Eastmain booth was always attracting interested people, but you could tell a lot of companies are fearful about the future...ER future looks brighter than most.