RE: RE: 43101 updateAt first glance, the location in Nunavut is big negative - no transportation infrastructure, short work season. But there are also some big pluses, chief of which is a stable mining friendly environment. Many current gold projects are located in areas where nationalist policies are either in effect or at risk of being in effect. As the price of gold reacts to the devaluation of currencies worldwide, the likelihood of government intervention by outright nationalization or simply changing the tax regime increases. Nunavit starts to look like mining Nirvana.
The business plan of NCG and its predecessors has always been a "prospect generator"... it generates and proves up a resource and JV's the production end with a partner paying the op costs. This has been executed in Australia with the buyout of our joint venture to Focus Minerals, again with our merger with Niblack and subsequent JV with Heatherdale and spinoff of our interest to shareholders as NIB shares.
In nunavit, our interests have been subdivided into 5 different JV opportunities, the most advanced of which is the 3 bluffs area. Lack of cash flow has made the company concentrate on advancing these projects one at a time.
The stated business model is to prove up 3 bluffs, JV the production end out while retaining a passive interest and preceding on to the next area of interest with a full wallet. (like we did in Australia and Niblack).
In the past, during times that were hostile to jr. exploration companies, management has succeeded in moving this company forward and finding new partners. Three bluffs will be no exception... it started out as a joint venture with Goldfields and may very well end up with Goldfields or another producer coming to the dance sooner rather than later.