RE: RE: RE: Conference Call "Amisk and Madsen are now impossible to develop without deeper pockets around to help"
oddykog,
Good post!
In the area of Madsen and Amisk, I disagree somewhat. In regards to Madsen, this property is just now undergoing a scoping study. In regards to Amisk, a PEA is being undertaken. These two pending reports will shed more light as to initial CapEx to undertake production but that's just the beginning. Madsen will eventually require a PEA of its own and Amisk's next step will be a BFS. In addition, and like most projects out there in the PM sector, efforts will be undertaken to identify ways to lower the initial CapEx like ramping up production in steps. All things considered, I think we are looking at a 3 to 5 year proposition with respect to these properties embarking upon production. At the very least, properties such as these do not become marketable and or appealing to lets say a JV partner without first having a BFS. Lastly, these pending reports will require additional info like follow up drilling, infill drilling and step out drilling.
Those things said, the investments undertaken on Seabee to date will pay dividends down the road. With gold having sold off, the cost savings on the shaft extension will help offset some of that pain. Despite Q1 production insight of lower grades per the CC, the mining aspect of the same is that CRJ is in a position to move waste rock at more favorable cost points then they were able to do when using trucks to move the same to surface. Its an underground mine. To move equipment safely and to have the space to mine, you have to remove the rock and get out of the way by moving it to the surface. In addition, and despite the higher grades of L62 and Seabee Deep, mineralization remain in narrow veins. Depending upon the pockets of mineralization, there will be times of higher grades and lower grades. Post Q1, however, I think CRJ will finally be on track. With minimal exploration this year and more in the way of studies to be undertaken, cash should begin to build in the bank account. As a note to others, Q1 does not look all that good because the bulk of Seabee re-supply efforts will be included in the numbers as well. IMO, this would follow the adage that it is always darkest before dawn and may present some excellent opportunities stock price wise.
To close, my eyes are on Santoy Gap and NOT Madsen and or Amisk. Going forward, that's the story unfolding and when it does, CRJ will be in a much better position to place Madsen and or Amisk into production. It follows the timeline imo of 3 to 5 years but investors are always impatient.
Something like that....