zedman, re; 49% ownership of Tuktu? "p,s what's the deal with the 49.9% ownership of the Tuktu, this is a surprise to me since I was never aware of it."
That's my point, to you, Behr, and all other old timers on this board! :) This is basic AXI fundamentals that everyone should have knowledge of.....if you are investing in AXI, or considering investing in AXI.
Not only does Roche Bay fall under the "100% earn-in agreement" with Roche Bay plc, but so does all the Eastern Melville lands, including Tuktu. And like the Roche Bay project, if and when Tuktu ever makes it into production.....which they most definitely will if Roche Bay does :).....then Tuktu will automatically become 100% owned by AXI and any new partner. And yes, the royalty still applies to Tuktu! :)
How Behr thought that the Chinese could be so heavily involved, invested so much time and energy with AXI and the Roche Bay project, without 100% ownership.......is beyond me. Somehow Behr feels that the "royalty" options available to AXI and XXP must be dealt with, before anything can move forward. Nothing is further from the truth! For AXI and XXP can enter into full fledged production without ever taking advantage of the "royalty" options! Mind you, they will end up paying the higher premium without doing so.....but that is the way this 2009 agreement is laid. And so there is no further confusion, AXI and XXP will most definitely take advantage of a lower royalty rate, by pay the agreed upon option price before full production begins. But at any rate, AXI/XXP have until 2012 to do this, unless of course a revised agreement between Roche Bay plc and the JV is entered into prior.
"Inferred"??.......sorry zedman, but "inferred" very much constitutes a legitimate resource, according to NI 43-101 and must be stated as such. But on the same token, only an "indicated or measured" resource, can be considered economical "reserve" after the proper studies have been completed. And inferred resources is always the necessary first step towards reserves. Don't fight it, it's a good thing! :)
Blessings,
Murray