ECUADOR GOLD AND COPPER CORP V.EGX

Let's find middle ground- name the negatives of this project

[PatchHand]

I've been following this board for quite some time and have accumulated a lot of share in EGX over the past year. What I have rarely seen on this board is the negatives regarding EGX and the developments in Ecuador. This board is full of pumpers and positivity (some warranted, many probably not). I'm not hear to bash but rather seeking middle ground prior to the PEA release that is rumoured to come at anytime,

What are some of the setbacks that could come out of this project? Is there any negatives that we can shine a light on. This way we can compile a more realistic understanding. Often times we can bit because a lot of us are "hoping" this pans out and we ignore the real story. 

If anyone has anything, please share.

[BrendanC]

I am possibly the biggest supporter of EGX, but in no way a "pumper". I do not mind pointing out some of  not so niceties of EGX. 1: Low Grade - High resources and low cost make up for this. 2: Inidginous - They are againt it and have threatened to take up arms with mining companies. This could scare some buyers away. If you have done as much DD as I have, you would know how

[PatchHand]

Thanks. What about access to and from the site, power, water availability, environmental laws? Most gold mines use cyanide and need to adequatley handle the disposal. Mining can be very damaging to the ecosystem and it could take YEARS to get approval and have the locals on board.  I worked at Barrick Gold Pueblo Viejo gold mine in Domincan Republic during the end of the construction. There

[PatchHand]

We should also take into account that established companies such as Barrick and Goldcorp, for example, are struggling to make adequate profits from their mines. It's a very costly business. There are companies that own patents to the technology of the high end equipment to extract the gold. Many of these companies are from far away countries. Such as Hatch Technologies who own many patents on

[BrendanC]

Hey Patch,    Those are all good examples of issues that can and do arrise when dealing with exploration companies and potential buyers. You can see my previous post from, I believe, the 8th of November where i point out the water, electricity and road access. Any potential buyers may have to produce small roads into the sites. Maybe a few KM of secondary roadways. Typically with any

[BrendanC]

Forgot to mention Low grade. Mining now is highly composed of low grade resources. Nevada for example is almost all low grade gold deposits but they are still highly profitable. You said that fuel was cheap. Cheap fuel helps with the cost/oz. If they can get the gold out of the ground cheap, they will make big $$. 10,000,000 Oz at 85% recover is worth about 9.5 billion dollars. Then we have

[PatchHand]

Thanks for the detailed reply. Workers from Peru slipped my mind. I recall working with Pipefitters from Peru.

[ser20det]

And ecuador is not a small poor country paradise island like dominican republic !!!

[PatchHand]

Did you takr it that I was trying to br offensive or skmething. Simply doing my due diligence. Not sure why "poor paradise island" matters. It was an existing mine that was further ahead than anything Ecuador has going on. Barrick and Goldcorp ran the show. Quite advanced with Canadian safety rules and Canadians running the job. However, there are costs and hiccups and I saw how long

[Goldenrules]

There are obviously some negatives or EGX wouldn’t be trading at this level, but the negatives are almost entirely external—Ecuador’s issues, terrible gold price and gold sentiment etc. I think EGX has broken a few too many PEA promises, which really screwed the day traders. However, the fact that the company realized what they were up against and didn’t waste resources promoting the story before

[PatchHand]

I also hold stock in INV Metals. They are focused on mining in Ecuador. They recently delayed their PEA which was due last month. Considering we have two different companies delaying a PEA regarding mining in Ecuador I would assume the reasons must be the current market.  Regardless, I hope something turns for the better as I have a ton of money tied up in both these companies. 

[McColgan1]

Thats a good sign to me, that means that both of these companies believe that their PEA will look much better in the near future. Maybe with the mining law changes, who knows!

[PatchHand]

The other interesting part about INV is that they sold off their Brazilian assets and put their focus on Ecuador. To me that looks like a good sign that the Ecuador play is for real. The PEA delay must not be based on bad news. Different company but I can't see the situation being much different than EGX.

[thepbay]

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