The SectorNewswire overview reportAs usual, not a lot of new info for us people already aware of the Alexandria story. However, there are a couple of lines worth noting.
``This new discovery is a quality intercept that has the earmarks of the beginning of a substantial new deposit zone.``
It looks like the SectorNewswire writer is thinking about the same lines as us. In addition, the positive magnetic anomaly is 1.5 km long. The positive current and historical drill holes identify a mineralized body over 400m on the west side (and still open). There is likely another 1.1 km of the magnetic anomaly still to be tested.
``Recent quality results advance Orenada closer toward monetization, possibly similar to what Alexandria achieved in its 2014 asset sale of the West Zone (part of its Akasaba project) to Agnico-Eagle.
And the announcement of the new zone this week opens up many new possibilities.``
It`s not clear what the specfic ``new possibilities`` are - on the writer`s mind.
Nevertheless, I have my own thoughts. With this new discovery, and possibly other new upcoming discoveries in the area, coupled with Orenada likely to move into the 800 - 900K oz gold resource range (possibly over 1 million later on), it looks like our Western Cadillac property (overall) is showing early signs that it could eventually go in a multi-milion ounce direction (both bulk-tonnage open pit and underground resource profile, especially with the pockets of recent Orenada high grade veins being profiled). Selling parts of it off early, prior to fully testing this theory, might come back to haunt us later on.
Regardless, Alexandria will need to monetize something in order to raise cash. Perhaps the writer is thinking that the positive recent developments on the Western Cadillac side may lead to a possibilty of Alexandria selling off a different asset instead (i.e. Sleepy or Akasaba Main).
My first choice is for Alexandria to negotiate an early buyback of the first one percent of the West Zone NSR. The buyback price is set at $7 million, but I would like to see Agnico go for the idea of an early buyback at a discounted price of $3.5 - 5 million. I can`t see Agnico agreeing to that in this low gold price environment though, but that would be my first choice with regards to replenishing the treasury.
https://sectornewswire.com/release060515azx.htm