RE: RE: The Good and the Bad - new Mill I agree Varl
Dividends are likely the only cure for the development of the many negatives hurting miner equity valuations:
- shift to ETF for gold exposure
- 43-101 compliance and IFRS standards
- PP holding time decreased to 4 months
- Gov't environmental permitting challenges
- labor shortages increasing costs
Adding to dividends, is a factor now recognized by the BOD, no more share dilutions.
It will be quite a few years before we ever see a high capacity mill in the La Ronge Gold Belt. IMO, other developments will be prioritized over a new mill. Cherry picking the high grade near surface deposits.
It is my understanding Greywacke will replace or add to millfeed from Roy Lloyd in the next 4 years depending on developments at Roy Lloyd (which could easily go beyond a 5 year life span at 10 g/t). I have been told that Corner Lake will become an underground mine next but I highly doubt it.
I can understand the logic the development of Corner and Oven Lake because they have a nice gravel road. But truly, why wouldn't they go atfer the near surface prospects, Bean Lake (a half mile of the road) and work their way another half mile down to Thunder and Lightning. Or go after the 301 Pit or Round Lake within a couple hundred metres of Komis. Or the A Zone Anamoly, or Fireweed, Big M, Charlie's Eye, Dog Creek Bay. All of these prospects are within a klometre of actual roads. As simple a knocking down trees for a few hundred metres to the next deposit in the line.
I am with Longtooth in terms of Golden Heart. It should have been given priority - 9 g/t open pit - over both EP and Komis. The open pit, scheduled to begin in mid-2013, should last 3 years before going underground. There is alot of excitement there. Komis and EP were only prioritized for convenience ....... and it appears because RN's instincts correctly told him that Komis was going to be much bigger than anyone knew.
IMO, there is no question the mine plan for Komis will contain 1 million tonnes at 4.5 g/t. A resource estimate should be in the neighborhood of 3 million tonnes at 4 g/t (300,000 oz) but we all know how Golden Band loves to understate resources.