RE:RE:RE:RE:RE:Is corvus heading to new low?
Thanks, did not follow Westmountain all I had in mind was that the money they had to pay to Corvus will be delayed which I assumend are nice words for "they did default on their obligations". So good to know that this money is finally flowing in in a few month time and if there is some additional money to be expected from royalties on the production this is not bad either. Although I do not expect this to be a huge amount but more likely something in the area of 100k p.a.
I agree on this years campaign is a little smaller as they now know where to look as it seems. Anyway there is this memory in the back of may head that the money they did raise was planned to be spent for drilling Yellow Jacket (= high grade zones) into mid 2014 and keep going into late 2014 if the results support that. So not sure if "all the money" will be needed for drilling the higher grade zone in the first 6 month but if the PEA does get the stock above CAD 2 then why not adding 5-10mio to the treasury? With 8 more millions in the bank and a fully diluted share structure with around 80mio shares outstanding this still would be ok in my eyes.
Of yourse it all depends on what the upcomming PEA does show. The 5mio ounces number is the magic numbers what people say. Currently this is highly leveraged project on the gold price with low cost and low grades. IF they can manage to make this high grades and still low price project I guess 5mio ounces and a lot of exploration potential remaining would be enough to make this a five bagger from current levels. Which is - besides a current number on ounces - almost the same what Louis James wrote about the company.
Another nice addition for the company that might take over Corvus is that they now have quite a good amount of water and sufficient power very close to the site.
Marigold has around 500k ounces proven and 2,8mio ounces probable as of 31st of December 2012 if the Goldcorp homepage is right.So I do not know if there was much exploration in 2013? And in 2012 the grade of their stuff was 0,55g/t (decreasing vs. 2011 and 2010) which Corvus will hopefully be able to beat with the starting pit. And 73% recovery vs. 80% of Corvus (current PEA) is also a nice advantage as this should increase margin.
So I hope that the offer will not hit us too fast as I think that the next PEA should show to have economics improved a lot and if the higher grade targets the are targeting with the drill rig prove to be as good as expected this could really put a smile in our faces. :-) But hey if I were that good I would not have to go to the office tomorrow. ;-)
Just my personal thoughts. DYODD
carinthian