RE:True North StoryWhat makes Huet so much smarter than the guys who couldn't make it work with 375$ million? Just bc someone sunk 375$ mln into a project and KLDX bought it for 32 doesn't mean its a good buy. I never understood this argument. Rob McEwen is making it with Black Fox. It doesn't make sense. Why would anyone buy and asset that has sucked 375mln into it and driven a company into bankruptcy? Who cares what the price is? I wouldn't take it for FREE. it's an albatross. Close it down and focus solely on Fire Creek.
Just think about it. San Dimas is so so so so dumb and nobody there knows how to mine gold even after spending 375mln and they go bankrupt. Then Huet (who must be Superminer) is going to come in and actually teach everyone how to mine gold there? The problem IS THE ASSET not who is in control.
JintsuGehan wrote: This is a direct cut and paste off the 2017 new Technical Report prepared for KDX: After investing approximately C$375 million in capital since 2007, including the extensive underground development and modernizing the process plant, San Gold ceased mining in May 2015, and placed operation on care and maintenance. San Gold declared bankruptcy and announced sale of all of its assets to secured creditors in June 2015. Historic Production at Rice Lake Mine from 2007 through 2015 is summarized in Table 6-3. In early 2016, Klondex Mines Ltd. announced acquisition of 100% of the Rice Lake Mine, process plant complex and a 400 km2 exploration land package from the creditors. In the first half of 2016, Klondex commenced refurbishment of the underground infrastructure and commenced trial mining on readily accessible ore. Historical Production under San Gold: Year Tons Processed Head Grade Gold opt g/t oz 2007 96,653 0.13 4.35 9,193 2008 116,835 0.09 3.20 13,845 2009 164,424 0.23 8.00 35,154 2010 275,860 0.17 5.85 47,082 2011 461,150 0.17 5.93 79,802 2012 629,279 0.15 5.07 93,233 2013 641,711 0.13 4.32 80,828 2014 390,564 0.12 4.03 41,890 So in 2013: 80,828 in 2014: 41,890 Plus the over $ 30 M spent before San Gold in 2005, so around $ 400 M sunk into the entire development of the Rice Lake Mine, and KDX paid $ 32 M!!! Insane when you look into the history of the story...cmon now Huet & Co. it's time to produce 40,000 oz. in 2018 let's get moving....what the market DOES NOT want to see anymore is CASH BURN on an asset that was acquired for just $ 32 M..it would become a wasteful investment. Spend the minimal to refurbish and restart the mine, and get those oz. going or else PRESERVE CASH and focus on Nevada especially with the great results out from FC and Hatter Graben is half decent and looks promising. I think this was Jeff Kileen's point and the red herring of all things has now become True North over Hollister. See Kileen's revised PT of $ 4.25 from last week. He went from $ 6.00 to $ 5.00 right after earnings to now $ 4.25 just last week. He is sharp and on the money. He called the chaos at Asanko Gold w/ Nkran and the issues...and Asanko is at 79 cents but that's a whole other disaster. Please Huet get True North up and running efficiently or else re-focus your strategy and eliminate this ridiculous cash burn. JIN