RE:RE:RE:Lesson learned from bordenbioTG,
Quite a long list you had there. Let's start with some
- New Beliveau: Slide 11 of the Dec 2016 Corp Presentation shows a much cleaner (straighter) borders with Richmont (west) and QMX (south) with a land swap with Richmont and acquisition of the Bonnefond North property. The land in the west is to accommodate the new Beliveau Pit (the more land the better for an OP). Besides, the stripping to expose the "outcrops" seems to indicate more stuff on the west side...good swap for the land. Another good call was the Bonnefound North property. Is this land on the Pascalis Gold Trend? It would be nice to see some IP survey map for the area.
The new gold zone (below 400m) was shown in the Dec 2016 Corp Presentation (PRB was quick in modifying the Corp Presentation after the NR...I thought I did not see that zone in the Corp Presentation). There was some pre-NI RE below the "mined out" zone (300m) of 23000oz @ 2.5gpt in Fig 9.1, Jan 2013 NI SGS report.There were some respectable high grades in that red zone (4.6gpt/15m, 6.3gpt/13m, 17.5gpt/12m above 400m; and 6.1gpt/19m, 9gpt/18.5m between 400-500m. DavePalmer should sink the drill in there to update the finding.
My feeling is that, even without the new (deeper) gold zone the new Beliveau Pit plus the two small ones in the north end would end up shortly with 1Moz (from the current 0.77Moz).
- New deep zone would add another 2Moz? Could be eventually, but I would start with1Moz (the grades are good consdering also the historical data from AGE) to be on the safe side if further data from the 2016/17 program show similar results.
- AZX: My favourite property. It's dirt cheap, if there is an opportunity I would scoop it up say for between $20-30M for the whole thing, mainly because of the ounces already found in the ground (some 2.5Moz total in Canada, you can sell the non-strategic properties later). In addition, PRB can get rid of the JV on the east side.
Or, PRB can take some baby steps first... by having a toe-hold, getting 9.9% holding in AZX, and inch up to 19.9% (presumably AEM is supportive) to become an insider (with one director on the BoD) to keep an eye on the operation, and then offer for the rest when there is an opportunity.
Note: The new PP of $5M (organized by Sprott) would add 100Ms to the OS, or 100/(350 +100) = 22.2% of new OS. In oter words, for $2M PRB can acquire around 10% of AZX, either through the PP, from other major shareholders, or even from the open market. PRB could approach AZX directly and offer a share swap for some 50Ms of AZX (some 2M PRB shares, 2% share dilution?)
GH