RE: RE: RE: RE: Who i still buying I don't think I was ever sold as a low cost producer but the idea was it was going to a very modest amount of money to get them into production. The big problem killing off new mines is the exploding capex.
The guys running the show are from Tower Hill and the reason they sold up stake and moved to Corvus was it was going to take something like 3 billion to get that mine off the ground. Tower Hill has the potential to produce something like 500,000 ounces a year for 40 years but its going to be hard to raise the 3 billion as Corvus ore grades look plump in comparision to Tower Hill grades.
For Corvus their idea was to get the basic low grade mine off the ground and then use cash flow to expand and hope to make the real money on the potential high grade vein.
While not a high grade mine, it sits next to a highway, has power, water and is in a very friendly mining jurisdiciton plus managment has put a lot of their own money into this project so this very expericenced team has positioned themselves as best as any new mine can. The main thing they can't control is gold price and if gold really tanks to below a thousand bucks an ounce then everyone but a few debt free/high grade miners will go bust.
On that note keep an eye on Tower Hill - ITH. If this stock gets really cheap then it might be a long term buy as it is one of the worlds largest undeveloped mines (can I call a mountain with thousands of drill holes a mine?) . I think their reserves are estimted at 27 million ounces and climbing.