TSXV:FCO.H - Post by User
Comment by
soultraveleron Jun 20, 2008 1:58pm
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Post# 15210083
FCO vs. Ring of Fire
FCO vs. Ring of Fire
westernkid: Thank you for your post and recommended exploration companies. I appreciate any well reasoned post especially when the person can write more than two sentences.
My concern about the ring of fire companies is the lack of access to the area. It could take many millions of dollars to build a road to this area. The cost of road building is going up each year with cement, steel, and asphalt prices going up due to asian demand let along fuel costs for heavy construction equipment. I would not be surprised if 5 years from now these exploration companies are still not near production.
As for FCO, this company has to be a primary consideration for buyout by a major mining company. FCO is about 3 weeks from issuance of the permit, and a buyout could take place any time after issuance of the permit. The primary risks are the environmental appeals, and the time it will take to build the mining facility. Also, I assume FCO is going to drill the remainder of their property - I have not read much about additional drilling by FCO. I assume they are putting all their efforts and funds into getting the permit and building the mine.
Also, CSI is another potential exploration company although there is additional risk being in Brazil and the resource has not yet been fully defined.
soultraveler
(do your own due dillengence prior to investing)