I can't see this resolved quicklyIn my simple layman terms
1 – Shore bought KRT of which I was a shareholder for a reason. They didn’t pay a very good premium for nothing. My assumption is that they needed the potential 70 million carats to guarantee that a mine will be built one day in the not too distant future.
I’m not saying the Star pipe alone can’t justify a mine, it probably can and will but until the pre-feasibility is complete no one will know for certain.
2 – Shore took over voting control of the JV for a reason and again I’m not privy to why but my guess they wanted to fast tract a few of the bigger pipes in proximity to the Star to match their scheduled completion of the Star pre-feasibility, so they can move forward very quickly with a feasibility and mine plan in 2007.
3 – DeBeers has their own plans for the JV and my guess is that they want to do a full exhaustive review of all the pipes on JV lands and any other juniors that happen to become their prey and come up with the best plan for the JV lands. This could drag into a few more years of exploration and sampling, and more than likely could also mean a separate standalone mine for JV lands.
This is a major difference in strategies for future development of FALC, and it won’t get settled over night. DB will not leave FALC unless they are paid a very handsome premium, and I doubt they will pay a very handsome premium to SGF and its backers since the stakes are very high.
Yes there are all kinds of theories about how it will end but those are just theories and in the end there can only be one winner in a lawsuit and in my humble opinion it won’t be Shore in their present form.
So how will this get settled? I can’t see that far into the future, so I sold my SGF shares but that’s just my way of operating.
The longer this thing drags out, the harder it will be on SGF, IMHO.
SGF is well funded right now so they can hold out for quite some time.
Again don’t take these comments as bashing, I still like SGF’s chances to become the 6th or is it 7th diamond mine in Canada.
GLA