Good timing to be an explorer It is difficult for me to imagine a better time to be a gold/silver explorer. Many analysts seem to agree that we are entering into a gold/silver bull martket. Mining companies are receiving approximately $700 more per oz than they did just two years ago. In most cases this is almost pure profit, allowing majors to pay down debt or bank a lot of cash before heading into the bull market. This should help exploration companies like Sitka receive full value in the near future. According to people like Marin Katusa, we are only just starting this bull market and not in the middle to late innings like some suggest (even though gold is up about 60% in the past two years). If you follow David Morgan, he states that 90% of the gains happen in the last 10% of the time. If both men are correct, we are about to enter some financially exciting times, especially if Sitka proves enough of its assets to capitalize in time.
A year or two ago, I read an article from aheadoftheherd.com, they talked about how much "high grading" has been going on recently with gold mining industry. This is important to Sitka and other exploration and junior gold miners because of how fast many majors are going through pay and how much faster they will need to replace ounces. One of the main points of the article that I focused on, was by high grading, they were leaving ounces in the ground. Even if the ounces left were low grade, they still come of the original resource and lost for the majors. I believe it was Rick Rule that once equated miners as "snakes who eat their own tail", every ounce they take out of the ground is an ounce closer to the demise of the company (unless those ounces are replaced)....which seems to be the template of some of the majors (high grade and replace the ground by buying someone's assets. With many companies high grading however, they will need to compete with each other for Sitka's ounces.
Because there have been few significant new resources created the past few years, because there is a real possibility of mines being Nationalized down the road and because of all the high grading that has been going recently, it appears we are heading into a shortage of mines in safe jurisdictions. If Cor Coe and his team can be successful (early indications are seem to indicate they might be) Sitka will be sitting on one or two Great Basin assets and another large land package in the Yukon (all safe, desirable jurisdictions). If gold/silver take off in a couple of years and "homerunhitter99" is correct with his timing of Sitka proving some their assets by 2022/2023, the stars might line up well for Sitka's shareholders in the near future.
Fingers crossed that it will end up being this easy.
cheers
L4D