RE: RE: GROWTH = Rising Share Price!"Now one of my objections to McMillian is that he stated on the last CC that if the POG did drop, his "plan" was indeed to high grade the Seabee Mine! I almost fell off my chair when I heard that comment. The head of a mine company thinks "high grading" the mine is an acceptable plan?"
One thing to denote about Seabee is that "higher grades" did not reveal themselves until the last few years when CRJ started drilling in earnest. Three areas of interest: L62, Santoy Gap and Seabee Deep. With L62 within striking distance of the mine, what was CRJ to do? By pass the same for lower grades? With Santoy Gap a year+ away from production, lower grade Santoy 8 rock will be mixed in with the Seabee rock so as to arrive at higher average grades (ie: like a return to the historical norm). As pointed out in the yearly production of gold chart, there were some years when Seabee was producing is excess of the historical norm. The point being that not every manager has the option to "high grade" a mine. Until L62 revealed itself last April, this mining opportunity was not available. It is NOT, however, being targeted for production for the sake of "high grading" the mine. Whereas that will be the outcome, its being targeted because it was right next door to existing operations. A "no brainer" where the "high grading" you are talking about really pertains to Santoy Gap that will take a year+ to place into production. Once again, what is CRJ to do? Let it sit there so as to mine lower grade rock? Meanwhile, if the ability existed to "high grade", would we not have seen better production numbers these past two quarters? These resources are multi year higher grade resources and NOT quarterly fluctuations for a CEO to make his bonus money. In an environment of higher gold prices, I would have fallen out of my chair if Neil did not try to exploit the same.
In the area of Madsen and Amisk, these are early stage propositions. A scoping study was indicated in regards to Madsen and a PEA has been indicated in regards to Amisk. These are first steps in a long process to arrive a BFS. Even if CRJ was willing to issue 100M shares to finance a mining operation at Madsen, what investor in their right mind would undertake that private placement risk without a BFS? If JV'd, what partner would undertake that risk without a BFS? If financed by a loan, what bank would undertake that risk without a BFS?
What's the IRR on Amisk?
Although I do not think this will be the case, what would happen if drilling on Madsen proved to be a bust?
There is a lot of work that still has to be done. Whereas it can be said management is dragging their feet, it can also be said that its a long drawn out process. To cite an example, it took years to dewater Madsen to the 16th level and then months to rehab the same. If that process could have been sped up, then I would wager that CRJ would have drilled Madsen last year or the year prior. Instead, they are drilling it this year.
On a closing note, some general info on a scoping study and PEA.
https://www.goldminerpulse.com/blogs/what-is-a-scoping-study.php