RE:News I don't expect today's stellar gold intersects to move the share price much, if at all. With this sector being at an all time low, a company's share price can drop like a stone on any bad news, and rise, or even fall on outstanding news.
Last week PVG released results of 20,000 grams per/tonne infill drilling, and the stock went down, Kaminak Gold came out last week with a very robust FS, and their stock was flat.
With ICG, and all that it has going for it, as well as for a select few others miners, it is, just a matter of time before the dividends start coming in.
Also:
While listening to ELD ceo Paul Wright the other day, he was asked about the future of growing the company without Greece, if the current permitting, and regulatory setbacks at Skouries & Olympias could not be rectified.
He stated that the company will continue to grow its operations, and is currently active in ongoing discussions, and where their future development capital would be deployed.
These discussions would most certainly involve ICG.
A little of ELD operations in Greece:
ELD spend $2.5 billion in a takeover of European Goldfields in Dec. 2011, of which it gave them the mining rights in Greece, Romania and Turkey of over 10 million ounces of gold reserves, in addition to over 80 million ounces of silver.
That's well over $200 per Au/oz including silver. Adding in the current project costs of $700 million for the Skouries & Olympias Mines, were now well over the $250 per Au/oz that ELD has spent since the takeover of European Goldfields....shareholders cannot be happy.
ELD has spent US$700 million since 2012 for development of the Skouries and Olympias projects
In 2015, ELD development capital on the Skouries Project was $200 million, for Olympias around $100 million.
Projected production for the Skouries Project is 103,000 Au ounces per/year over 27 years
Projected Production for the Olympias Project once in commercial production 2020 & beyond, 120,000 Au ounces per/year over 25 years
For ELD, the Olympias, and Skouries projects account for around 8 million ounces in attributable gold reserves.
While the Skouries, and Olympias projects are both low cost, high margins operations, the headaches continue with delays within Greece's unstable liberal gov't, driving project costs upwards. In particular driving down ELD stock price to a near all time low of around $3 dollars....shareholders cannot be happy.
With ICG no doubt in negotiations with ELD, and with ELD feeling pressure to shore-up the confidence of their stock with their major shareholders, the pressure to act is with ELD.
ICG with their continued stellar drill results, and most probably other producers looking hard at the project, ICG has the leverage they need to cut a very good deal for its shareholders.
With ICG still differentiating Integra Gold into 2 separate projects, Integra's Lamaque South Gold Project and the Sigma-Lamaque Mill and Mine Complex, it wouldn't be to far of a stretch for ICG to just JV the Lamaque South, given enough cash upfront to fast-track the Lamaque North Project on their own.
Something along the lines of what Centerra Gold offered Premier Gold on their Hardrock Gold Project. If having a partner to bring the Triangle into production is what ICG management & board thinks best for its shareholders, then this might be the ticket for both companies.
As a side note - I had commented on wither the down-dip of Triangle's C structures might cross over into AZX Airport property.
Well today AZX announced that concerning the Airport project, the company has completed geophysical work to aid in identifying drill targets on that property. Results will be analysed and released accordingly. We'll have to see how that develops, and if ICG may have any future interest.
Again ICG's share price might not go up much today, but I'm happy as hell with today's news. Being that the shallow C1 & C2 structures are coming in alot bigger than Herve & company had first thought.
GLTA