RE:AGM News[quote=yhzsailor]The key development appears to be that the company has engaged JDS Mining (jdsmining.ca) to perform a bulk sample as well as begin developing a production plan to mine the resource. The planning is well underway. The company has about $1.2MM still in the bank, and will have to raise more to bring the project to full fruition. The goal is to do so in a non dilutive manner. The good news is that I feel they are engaging with re*****ble firms (both Mercator and JDS are full fledged real companies) and these companies will want to move the project forward with some urgency. [/quote]
I went to the Argex Annual Meeting on June 27th in Montreal and got a nice long chat with Mark Biling. He talked to me about the above scenario (JDS mining and all) but he was a little more precise about some points. He told me that JDS was pretty interrested to develop Goldboro by targetting high mineralized zones (with open pit and underground extraction). They did a guestimate with quick calculations and JDS was estimating a production cost of about 600$ an ounce using a mobile mill system. With that production scenario, the NPV is valued at $100 millions with the current POG level. JDS is specialised in the exploitation of small deposit.
Also, the bulk mining was no longer an option with the current POG since they wanted to get some cash from the operation but with the current price, the operation would only give peanuts or even drain some cash. I asked him if it was an issue for the Nova Scotia government and the permitting process to not do the bulk mining, but he answered me that it is not an issue with the scenario they are looking with JDS mining. Mr. Felderhof helped Acadian Mining in bringing a mine to production in Nova Scotia in the past so they are pretty confident that he will help Orex reaching the production milestone as well. Mr Biling mentioned September as the next possible date for an update.
I asked him also if there were some negociations going on with our neighbors to see if a joint scenario could be possible for exploiting the gold in the area. He answered me that the relationship is good but this scenario has not been discussed yet. He told me that Orex offered to buy Acadian's properties located near Goldboro in the past, but Acadian were too greedy at that time to seal a deal with them. Accadian signed with Flex Mining & Exploration later on.
He finished the discussion (well I kind of put an end to it myself!) saying that he hoped the POG will reach the bottom so the production scenario they are trying to put forward will be viable. I also "suggest" that he supports the share price a bit by buying on the open market and he told me that he will.
Please take this as it is : a non-formal chat. Please do your own due diligence.
GLTA