Investor Relations Response.. I just want to share the response I received from Investor Relations, namely from Greg Taylor.
It was my intention to clarify the facts when it came to their latest news release regarding the Capital Cost of bringing their Frankfield Property to production. I must apologize, my interpretation was incorrect....the savings in fact are 107 million...they can get mining and processing for 60 million...this is unbelievable!
I did inform Greg of my initial investment of 400,000 shares @ $.05...which means I am on board!
Let us face facts...we must believe that Management can get the funding necessary to procede further or this thing is dead...bye..bye...to digger's $20,000.00!
The way I look at this and trust me I do not make decisions like this hastily or "on a hope and a prayer"...a lot of time and analysis goes into my investment decisions...as previously mentioned I have been tracking this story for a couple of years and know it very well.
I would never initially invest $20,000.00 into a five cent stock on some play that was just starting out with no data available and such high risk parameters...but...this play is so much more different and a very unusual opportunity in my opinion.
The recent smash in the Junior Sector has opened up this amazing opportunity and believe me I am looking for a 10 bagger here...it all comes down to risk vs. reward!
My analysis and study along with factual information released by the company reaffirms my conclusion that they do indeed have the goods and this project will come into production.
60 million dollars capital costs for 95,000 ounces per year...unheard of!
The following is the response I received from Greg Taylor @ Investor Relations:
Thanks for your note. To answer your key question, the $107 million capital difference is made up not only of our not having to build a grinding mill, but also due to the fact that we would also not need to build a gold plant or set up an autoclave to produce gold bars, with the latter two adding another $40 to $45 million in costs. On the other side, the projected $60 million we expect to spend would include (very roughly) about $10 million in refurbishment costs to the Kidd Mill plus $25 million in underground development plus another $5 million for the Feasibility Study, finalizing an agreement with the First Nations, permitting costs, ramp development plus $5 million for infrastructure (roads et al) and G&A plus a $15 million contingency.
I hope this is more clear. I look forward to providing more detail on this later but just now we are limited by our agreement with Xstrata with regard to some of what we can get into.
Regards,
Greg
As mentioned the potential deal with Xstrata is huge! A Mill for 10 million dollars..again...unbelievable! For those that are not familiar with the Kidd Operation (part of the Xstrata Group) I can assure you that it is a world class operation...Glencore recently purchased Xstrata to form Glencore Xstrata...a giant in the industry.
Yes...they will have to pay "fees" for processing but the costs will not be an issue moving forward, they can more than carry them as normal operating expenditures..let us not forget the tailings facility and environmental permits and responsibilities that will not be an issue..this is huge! The Kidd operations will take of that for us...they have been in operation since the early 1960's.
Can they get funding is the question?
In my opinion...to move as far as they have with Glencore-Xstrata (Kidd Mill) they are well advanced in the process and a decision should be made in the next 3-6 months.
I find it very interesting in the manner in which Greg Taylor worded his response in terms of the following:
"I look forward to providing more detail on this later but just now we are limited by our agreement with Xstrata with regard to some of what we can get into"
It is possible that they will finance the project in some way as mentioned by AK27 previously on this board.
Let us face facts...we have seen many wealthy individuals invest in ventures such as this...I believe that it will not be difficult to find a suitor(s) to provide the funds necessary to move this project forward.
Recent history has established the fact that projects are being advanced in the Indicated Resource Category...yes..the bulk sample will provide the ultimate information to really know what the Frankfield Deposit is all about...but...by then..you will have to pay a lot...lot more for this stock.
I know...I know..."if it looks too good to be true"...then...it is not true. I beg to differ in this case...a whole lot of different circumstances!
We have so much factual information...for five cents..come on!
In the end...it is your hard earned money that is at stake...digger144 has $20,000.00 on the line...I put "my money where my mouth is".
You cannot say that I did not attepmpt to get the story out to those that have been waiting for a great opportunity and have followed me for some time now.
Digger144
P.S. It is never easy...a price must be paid in terms of risk and seeing the story through.
Comprehension and Understanding...analysis, study and knowledge does help.