GREY:ADEXF - Post by User
Comment by
greenandgoldon Sep 28, 2011 1:00pm
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Post# 19093859
RE: AXI PR
RE: AXI PR1) "Dedication and priority focus on Roche Bay has allowed us to move forward despite delays and markets conditions." I believe this is the first time management has admitted that there's actually a delay with the JV agreement and the progress of the Roche Bay project. I've been saying that all evidence points towards stalled progress at Roche Bay, but many of you have disagreed with me. AXI management confirms my suspicions here.
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2) The big question now: has AXI, on a limited budget this summer, done enough drilling and development work at Roche Bay for the feasibility study? If so, then everything is fine. The financing deal closes, the feasibility study is released and next year is dedicated to permitting, engineering and definition drilling. Is roughly 2000 meters of drilling enough to increase Roche Bay's 323 million tonnes indicated to 500 or 600 million tonnes indicated? Less tonnage than that will impact the NPV of the feasibility study (smaller projects are worth less).
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3) Will the JV agreement be signed? I like the positive comments from the Yaogan Zeng, and I think the deal will very likely close. Is it a certainty, a done deal as many of you have insisted? Of course not. XinXing admits in this press release they brought their Mining Institute team to conduct "technical due diligence" and that they're touring other Arctic mines. Obviously they are still kicking the tires. I blame AXI management, with its "fully carried to production" and "our partner" rhetoric, for confusing shareholders into believing a final deal was already in place.