RE:InfrastructureLloyd_Blankfein wrote:
Maybe some of the more knowledgeable posters can address the issue of infrastructure in the Yukon. VIT itself needs more power than the total amount the Yukon is currently producing so how can it mine its deposits any time soon? And it's in a remote area with a long way to ship mine construction materials and concentrate. And there are no towns around there for workers to live. All this adds up to a high cost mine. There are high grade properties with much lower risk in Ontario and Quebec, so why wouldn't investors put their money there first? I'm not shorting VIT or here just to bash, I think these are legitimate questions. If there are sound answers I would be genuinely interested in hearing them.
Lloyd - I am by no means an expert, but I can provide you with some answers:
Yukon Energy has hydro power capacity to support VIT mine. VIT has already a Power Purchase Agreement (LOI) with Yukon Energy. Low cost hydro power (at a fraction of the cost of power in Ontario) is a big benefit for VIT Eagle project.
VIT project will be a camp operation (fly in/fly out type operation), with the closest airport at Mayo, with regular commercial flights in/out of town. A 110 person camp is already on site, with another camp already bought and ready to be moved on site this coming spring.
Year round road access is also a big advantage for this project, no materials will have to be brought in by air or on winter roads (like many other operations in the North, including northern Ontario).
VIT will not ship concentrate, as they are not a mine/mill operation. They will ship dore bars. They only need diesel, explosive, cyanide, equipment and spare parts to operate the mine. Once construction is complete, the requirements to operate are basic, unlike a higher grade underground mine.
VIT is well positioned in Yukon, and they will be there for a long time. The exploration potential is fantastic, and they will unlock it by drilling some key targets in 2017. Eagle project is very robust, fully permitted and ready to take off soon.
You can short this stock, but you will loose your shirt on this one. Beware!!!
Good luck!