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Claude Res Inc CLGRF

"Claude Resources Inc is engaged in the acquisition, exploration, and development of gold and other precious metal properties. Its projects include Seabee Property and various exploration properties located at Laonil Lake. It also owns Amisk Gold Property."


GREY:CLGRF - Post by User

Comment by December3on Dec 14, 2012 11:52am
137 Views
Post# 20731063

RE: Financing - warrants

RE: Financing - warrants

>>>>That used to be the case. As you can see in the stock price and year end tax selling, those so called "Madsen Investors" are bailing because the drill results have fallen SHORT OF EXPECTATIONS. Granted, Madsen still has a million+ ounces of gold and most likely can be mined for a profit, but its NO GG or RBY. Given that value exists both in mineralization and infrastructure, Amisk (if warranted) would be a better long term hold for CRJ (ie: got to see the PEA). Madsen, meanwhile, is an excellent asset to sell for cash to both shore up immediate finances and to a greater extent, finance the development of Amisk. Going forward, this is what I think will happen and what will serve as a catalyst to the stock price.<<<

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Now you are just speculating on matters.  WAKE UP!  THINK!  No way to prove that Madsen investors are the ones who bailed.  Could be.  But I have to wonder if the Madsen project could really be profitable.  All they have to mine right away are left-over scraps from the previous operations.  In order to get to that high grade stuff, they need to do a lot of development work - work that costs money, work that doesn't generate any income!  Where is CRJ going to get the money for development?  Those statements by McMillian about Madsen being ready to start right up, like this was a turn key operation, sure appear to be "forward looking statements" to me.

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But hey, you admit that Madsen is a disappointment and no RBY or GG Red Lake.  So if it is such a disappointment then how is it going to be a great item to sell?  One might get the $20MM CRJ needs for March 2013 debenture repayment, but no extra cash for development or growth work elsewhere.   I hope you aren't trying to value the mine based on "replacement cost!"

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Now as to selling Madsen to finance the build out of  Amisk - you have to be kidding me!  Do you have any idea of the cost to build a new mine?  If you listened to the CCs you would know as McMillian stated it numerous times!  What if it costs $300MM to $500MM to build a mine/ mill at Amisk?    Is CRJ going to be able to sell Madsen for that level of cash?  I doubt it.

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So what you are demonstrating is what I call "wishful thinking" without critically examining the facts or putting together information already supplied.  This is what I call "investing on hope!"  Not really convinced the plan is a great one, but "hoping" things turn out well.

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But until I see a full Feasibility Study on Amisk, I'm not convinced that it is a cash flow cow waiting to be milked.  CapEx for that project is going to be high, grades are way low. Similar projects like OSK have much higher trough-puts than envisioned at Madsen and still has costs of nearly $900. 

 

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