GREY:VMSTF - Post by User
Comment by
U3082014on Apr 25, 2011 7:16pm
400 Views
Post# 18485505
RE: I'm in
RE: I'm inReed will probably start in Fall of 2011.
Ramp/decline won't start until Spring of 2012. You cannot start a decline/ramp in the middle of winter.
There are also some engineering issues at Reed. Groundwater and Limestone.
Scoping Study. Board approval. Advance mining Permitting. Construction will begin. Main mining permit. Ramp/Decline.
Production in late 2012.
Royalties in 2013.
VMS will owe HBM&S 30% of CAP EX.
There is a bit of a lull going to happen here as the market is NOT going to give VMS much value for Reed unless there is money rolling in.... OR..... HBM&S Drills and proves up 2x or 3x the deposit......or VMS drills something on a border property, Cowan or Sails.
Pretty decent buy at today's price but your going to have to wait for some movement to the upside.....
Buy&hold.