RE:RE:RE:RE:Comparing Goldstorm and KSM Gradescskhurasu wrote: This has been beaten to death. Seabridge has the right to a tunnel through Treaty Creek granted by the BC government and Seabridge has said will do their best to avoid any Tudor reserves. There are no reserves. If/when there are, Seabridge will bend their tunnel to cause the least disturbance to Tudor reserves as they have stated. A Seabridge tunnel could be valuable to Tudor for underground access and drilling assuming they could work out the details with Seabridge.
Beating a subject to death does not extinguish uncertainty. Americans have been arguing about the second amendment and Roe v Wade for decades - live, current political and judicial footballs, not beaten to death just because everything possible has been said about them.
Seabridge has a couple of problems. The first is how shy the Province is about financial liability. The Three Amigoes will say the tunnel permit was issued invalidly, either because the province failed in a duty to make reasonable full inquiry, or because Seabridge misrepresented the potential impact of their proposal on Treaty Creek. You are talking hundreds of millions, billions at stake. There will be no bulldozing through any controversial injury to any party here.
Doesn’t matter where that ends up at the end of the day, it can be made into a justiciable issue which could mean years of litigation delay. The Province will lean hard on the parties to prevent that too, if they can.
The second is it is heavily in the interest of the Province to see both properties developed in the most efficient and profitable manner, which, end of the day, likely means the tunnel capacity needs to support much larger production from both properties and be developed as a cooperative joint venture ... and I’d throw in the same thinking for the mill as well. Substantial pressure can be brought to bear by the Provincial and Federal Crowns to see the parties cooperate. This is a huge mega-project now. There is no “go it alone” for Seabridge. If you are betting on that all I can say is good luck, but think it over.
Why has nothing happened this year with KSM? Um, because it was wait and see on Goldstorm, and now it will be the same on PSZ and then Eureka, Orpimont, etc ...
If I had to crystal ball it ... no big operator will bid Seabridge until they have tied up the Three Amigoes Treaty Creek interests first. That ain’t happening with so much valuation uncertainty until there is another year of drilling at a minimum. Possibly over the winter TUD will announce they are mobilizing another four or five drill rigs, if they can find them, for next season to attack multiple zones.
We’ll see. You watch the Province start to weasel on that permit as soon as the parties come to blows, if it comes to that. Can you spell “injunction?”
It is a tough break for Seabridge for sure, but what’s in the best interest of the sovereign jurisdiction here? A coordinated, cooperative, mega-project development. Big, big stakes in play.
cg