RE:RE:RE:RE:RE:RE:RE:RE:gold sector
AlwaysLong683 wrote: OK, found the initial mine build cost estimate of $6.4B for KSM, so you get a gold star there. However, both the KSM project and the anticipated Valley project are in the midst of making their case for a mine in a rising interest rate and inflationary environment, and SGD is quite a long way from producing a PFS showing mine build and AISC estimates. KSM has lots of existing infrastructure in place already. SGD has little. Again, we shall see......
Read up on Seabridge some more. It was awhile ago since I did research on that project but they have a whole host of issues up there in the mountains of BC. First part of the deposit was said to go under a glacier for starters. They would have to build a massive dam larger than the Hoover Dam. I'm not making this stuff up. It's a nightmare. They would have to build a massive power plant. There are huge amounts of snow and other weather concerns up there such as visibility. It's very harsh weather up in the mountains.
That's just a few thing wrong with that project off the top of my head without digging into it. One guy estimated costs could surpass $10 billion. I remember reading it and thinking to myself that it sounds almost as bad as the Muskrat Falls project in NL and what a terrible project it is. Somebody with a huge amounts of capital will need to be brought in to make it work.
There is a lot of logistical and engineering issues with that project. Yes they have huge amounts of gold and copper but the project will need Elon Musk to finance ut. Lol I'd take Snowline's Valley gold deposit up in the Yukon with its simple metallurgy over that mess up in the mountains of BC any day of the week.
And as far as New Found Gold goes that is a logistical dream right next to a highway with Tim Hortons 15 mins away and power lines going right across the property. The only issue is they need to drill about 100k meters of drilling for every million ounces of gold they prove up because of the erratic nature of the narrow high grade gold. They will make it work but you are going to be waiting awhile. The Keats boys handed the first couple million ounces to them on a platter but the next few million ounces won't be so easy. I'm still a shareholder of NFG just because it is so rich and eventually it will have a positive outcome but make yourself comfortable because that one is going to take awhile.
I will make a prediction that you won't believe. Now this is only if Snowline keeps the company intact and don't spin off assets. I think within two years SGD will have a higher valuation than either SEA or NFG. I'll get some push back for that statement but what Snowline has discovered up there in the Yukon is once in a lifetime gold discovery. It's the best gold discovery I have witnessed since Arequipa in Peru back in the 1990's. Mother Nature has blessed SGD shareholders with something very special. It's huge, excellent grades and the metallurgy is so sweet that it will make huge amounts of profit for decades. Listen to Quinton Hennigh in his videos and how he keeps talking about the metallurgy of those reduced intrusion related gold systems.
There is a reason he keeps taking about that. Lol. And remember my father is the Rock Doctor who was a chief mine geologist in a prior life and exploration manager of Noranda for about a decade so I know a few things about the exploration and mining business. I'll stick with the favourable geology that can produce big mines at a huge profit without having to spend ten billion to get it up and running.
You go back to crunching your numbers with Seabridge because the cost of that one to get up and running will surpass that of Muskrat Falls by the time they start producing. Hopefully their power plant works better than Muskrat Falls. Lol I think Seabridge are spending $150 million a year just leading up to when they start spending billions a year to get that thing up and running. Not sure who they will get to spend the money on it. Maybe Justin Trudeau and his bean counters will step because they think money grows in trees and he's good at handing out tens of billions of dollars at the drop of a hat. Lol