EAG/NOT claims–Current Updates+Issues to be determ EAG/NOT claims–Current Updates+Issues to be determined
It is now becoming clear that both of these companies are working hard together to complete said NOT options agreement based solely on former NOT claims at Windfall..
As they stand now, EAG has a 100% INT in all the rest of Windfall claims, and 75% INT in all said NOT claims, with NOT retaining 25% INT only in said claims...
Under said options agreement , as per Sedar filings, NOT has the option to:
1. Keep the current 25 % Int only in said NOT claims, and pay EAG all costs including 10% Int on development ,and production costs of said claims to production..
2. NOT has the option to Exchange above noted 25% INT in said claims, and all associated costs, for a 2% royalty payment of production of said claims, without any further expenses to be incurred/paid by NOT...
I imagine that NOT is waiting for the feasibility study to be produced, shortly by EAG, in order to make their decision on this matter...The latest drilling results by EAG, when added to their current 43-101, show an indicated Reserves of 538 Mill Ozs @ 10.5 gm/ton and Inffered Resources of 822 Mil Ozs @8.76 gm/ton...a truly high grade Gold deposit so far, by any standards, with the drilling exploration continuing as follows:
Next Steps:
• Current Drill Program (June – Oct)
– test eastern extension of Main Zone
– test mineralization at depth below intrusion
– test shallow targets to better define open-pit potential
We now know that quite a number of the current drill program objectives have been successfully completed, including ,the extension of mineralisation at depth below the Red Dog intrusion, with assay results announced proving said extension ...
NEXT
• Begin Scoping Study (Oct)
• Begin Next Drill Program (Nov)
• Initiate Pre-feasibility Study• (spring 2013)
As you can clearly see/read that EAG is fully commited to and fully planning for said pre-feasabilty study to deliver to NOT very soon after completion, in 2013, as required by said Agreement, and will be using all the future drilling to incorporate into the current 43-101 for said PreFeasability study...
SO YES...It is probable, and likely that NOT will choose the 2% royalty payment, instead of the carry 25% INT and all its additional costs including the costs of mining it + 10% Interest to EAG..In the 2% royalty option there would absolutely not be any further costs associated with this options for NOT, as well as the elimination all the time and headaches associated with mining...In which case I may eventually turn out to be correct in that AEG would retain 100% Int in said NOT optioned claims, thereby guaranteeing that EAG would eventually hold/own 100% of all claims at Windfall.
Last word...I’d like to thank those posters here who contributed greatly to our current knowledge of said NOT option agreement including MAX and all the rest...IMCO, you not only helped yourselves as EAG shareholders, but you also helped to clarify this situation for all EAG holders..
Good luck to all EAG shareholders, and really looking forward to the start of that EAG HIGH GRADE Gold OPEN PIT mine...
Mellow...