GREY:PGDIF - Post by User
Comment by
ekimon Sep 20, 2015 12:32am
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Post# 24119512
RE:Spoke to Tom P
RE:Spoke to Tom PMy take is this then:
why didn't they do the geotech drilling on CH-6 this summer?
Many reasons and more with Oiltar's response.
1 - Save money
2 - Isn't needed for the PEA level of study. Will be needed for the FS and probably a PFS.
3 - If CH-6 stand alone open pit isn't in the financing cards...then you myswell do geotech drilling for all included pits at the same time. ie. geotech on CH-7 and CH-6.
4 - If CH-7 doesn't cut it....then don't do geotech drilling.
5 - More likely. how big is the pit at CH-7 and where do you do the geotech drillling?
More on 5.
You have the northern part of CH-7 that is more likely going to be in the positive margin field.
You have the southern part of CH-7 that is not nearly as known whether it will lead to a positive margin or not.
Therefore, to drill ch-7 geotech, you need to have some idea of whether you have a smaller northern pit or a larger pit that encompasses the whole thing. This effects your pit walls and where the geotech drilling is needed.
A lot of dollars have gone into the southern part of CH-7 to firm it up to include or exclude in the plan.
You can have incremental ore as well. Have a northern pit that bleeds into the south and as long as the material in the south has to be blasted..it only needs to pay for the cost of milling only. That is good news.
If CH-7 is a complete bust...then CH-6 deep drilling may be next and that is a costly program....one that they've avoided so far. One that Renard has done as a requirement to the project as that project is already 90% underground anyway.
If they think the multi billion ch-6 open pit is too short of a mine life....and the same bankers are saying the multi decade SGF project is too costly from a capital point of view...what do they want?
A 50 year mine life for a $100 million capital cost?
Dreamers
LONG...PGD
EKIM