OTCPK:FRSAF - Post by User
Comment by
Gaberlunzieon Feb 18, 2012 2:01pm
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Post# 19554175
RE: RE: RE: Mining Analyst's Pick
RE: RE: RE: Mining Analyst's Pick I beieve you have t figured the financial situation about right - given some guessing. Perhaps I overlooked it before but the latest 43-101 report contains assays from the tailings that I dont recall seeing before. These results show several holes have been drilled into the lower part of the old tailings pond and that assays are around 12 grams gold per ton. This is much higher than the other samples, all of which come from the top half. This suggests the tailings operaton, if it ever gets going!, could be more profitable than forecast.
One point - I believe you are wrong about Sprott losing out if the operation goes belly up. Sprott will be both a large shareholder and major creditor. If pinch comes to shove and FAU falls over the brink, Sprott will be able to run FAU. They can then pay off the creditors, including themselves, in stock and reverse split the shares. If this happens, Sprott would finish up with full control for $7.5 million, less whatever was paid off. If the operation pays off, Sprott gets its cash back plus a pile of shares in a paying outfit. They got themselves a good deal either way and one inwhicdh we cannot share.
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