Quakes and the Patterson Lake DistrictQuakes,
PLS has the road running through it, which is a plus and the deposit further along as far as the high grade Triple R goes. The economics and rapid payback are attractive and certainly the path you have laid out makes econimical sense. It seems that NXE has laid out a path toward permitting the Arrow deposit that may actually surpass the PLS timeline. Since you earlier indicated that the environmental and geotechnical work is a task for the buyer to complete, is it possible that the Arrow deposit becomes the expeditious and more economical starting point?
Should the outcome of the geotechnical work be favorable, that is a good thing. If it is unfavorable, the cost impact will affect the payback and timeline a little bit. Since the environmental work is more extensive considering there are lake issues to address, and there are no plans to proceed with the geotechnical analysis or environmental work, it could be the Arrow completes a pre feasibility study prior to Triple R and 600W and whatever they may hit this winter.
The unknowns are not huge risks, but they may impact the development timeline and marginally the economics. As I said, I like the plan, but I am not sure that Arrow may be able to go into production earlier. Since we do not control when someone comes knocking, and if it should be in the spring of 2017, it is possible that this scenario plays out and Arrow is closer to pre-feasibility. I think the potential of the Arrow MR could exceed some peoples expectations, but I think they are both sitting on huge upside potential. FCU should not delay the geotechnical and environmental work IMO.