RE:Consolodation for Brigus perhaps
Josameyer:
I believe that this could be the inflection point for the POG. Thus prudent BRD management would be wise to carry the Goldfields (Box & Athona) properties with a view to selling only when market conditions and the POG are in sync. This may not be for another couple of years.
With the plethora of geophysical targets yet to be drilled on the BF complex, I do not see any activity on Goldfields for many years. I am looking closely at any BRD decision to undertake the real serious challenges of working at a location where one adverse spring thaw could provide a serious LOM setback to a $200 mln capex. (case in point, ... Google Tahera).
With the $70 - 80 mln required for taking Grey Fox to production in a couple of years, there is enough time for BRD to work with SAS Hislop (recall NI 43-101 history of Duncan M for APG now CEO of SAS. WIth the departure of JP, DM could either be playing hardball or co-operating with BRD in the development of an "Osisko scale" production complex). Recall EXL-GME JV impasse that forced the liquidation of the partnership. DR claims that a third ball mill will be sufficient to handle GF production. I guess he will be looking north towards Pike River, leaving SAS to "sweat it out".
On the head office topic of discussion. I have deliberately avoided comment as WD deserve to get some some Bacileau "slack" for doing the Linear-Apollo combination after APG did their financing at the depths of the 2008 financial crisis with two Aussie vultures. Going even further back, why did APG not expend the $25 mln on the development of the old Glimmer property instead of "picking up" the wall of the pit in Montana? Of course hind sight is 20-20. Bottom line, a point missed by the Yahoo bashers is, if WD did not bring APG and Linear to the altar, we may not be having this discussion today.
Thus, recall the Frank Magazine critique of WD of a few years ago? The question remains, Halifax office space is much cheaper than Toronto's and flights to TO from Halifax are readily available. This does not preclude moving to Bedford (space vacated by Blackberry), Burnside or even a room in WD's "basement". The "technical office" in TO could be moved to the mine site in Matheson; however doing so it would be difficult to attract and retain talented senior executives, whose families depend on enjoying the niceities/culture that TO has to offer.
BWDIK? Goldfields and senior executive office space will be resolved in due course. i.e. If/when the POG can return to the role of world historical reserve currency, post QE, tapering, Syria, etc. The big US bullion banks and ETF's have used paper gold to kill the gold rally. The question remains can China's imports and India's import restrictions coupled with a falling rupee; go on for much longer?
Maybe, maybe not.
GLTAL - GLAP
Cheers
Stanley