Thanks for the quick recap Quakes. Looking forward to the 2017 drilling season to start!
quakes99 wrote: Please post whatever Sensitivity Chart you have. Just be cautious when it comes to the source. If it was posted on CEO.CA, for example, then you need to be very cautious as there are a lot of charts and graphs being produced and posted over there which have no relationship with the facts. Here's the problem:
Fission has an independent NI 43-101 compliant Preliminary Economic Assessment published which provides a preliminary Economic Analysis of Indicated U3O8 resource, giving estimated Capital Costs, Production Costs, a mine plan, Risk Analysis, Sensitivity Analysis, Cash Flow, Life of Mine, Net Present Value using a DCF model, etc.
Fission NI 43-101 Preliminary Economic Assessment - News Release - 3 Sept 2015
Fission NI 43-101 Preliminary Economic Assessment - SEDAR - 15 Sept 2015
NexGen does NOT have an independent NI 43-101 compliant Preliminary Economic Assessment. Their resource is 100% Inferred, which under international guidelines cannot be used to carry out an Economic Analysis. Factors such as Capital Costs, Production Costs, a mine plan, Risk Analysis, Sensitivity Analysis, Cash Flow, Life of Mine, Net Present Value using a DCF model... NONE of those analyses have been done yet.
As a result, it is an Apples to Oranges comparison. There are no independently commissioned studies and analyses on NexGen's Arrow project yet that spell out any of those Economic factors, while for Fission they are already well defined. Anyone who says that Arrow will have low CAPEX or OPEX is speculating and guessing. There are no reports out to support any such claims. Fission, on the other hand, has the data and analysis done by RPA and its team of consultants to back up their economic assessment of PLS.
As to the start of the Winter Drill Program, while we would all like to see it start now rather than January, it makes no sense to be paying drill crews and support workers overtime rates over the holidays when that work can be done in January at regular wage levels. Fission is trying to keep their drill program costs down and what better way to do that then avoid the excessive overtime over Christmas and New Years. Workers being kept at PLS away from their families over the holidays is no way to limit cost. Drill programs are complex activities, and there is a Project Management team that oversees the whole operation, trying to get the best bang for those $64M bucks in the treasury.
I agree that a News Release to outline the program would be a great thing to see right now. Based on past experience they tend not to do that, probably because they don't want to box themselves into a corner too soon. You'll need to get on the phone to Ross if you want him to change his routine. But, with certainty, we know a Winter Drill Program will be starting in January.
Cheers and good luck!
Uraniuman308 wrote: Quakes...I saw a sensitivity chart for NXE based on EV/lb and Resource M/LB. I would have posted it but I'm sure someone would have interpreted this as bashing. Has a similar chart been done for FCU? One thing I liked about the Warren Irwin interview is his discussion on why he likes juniors over producers in this market. You have a double whammy; upside potential due to drilling and increasing pounds and a rising U price. That is why I would like to see a start to the winter drill program and a revised RE sooner than later. Nothing happens in the junior market until someone does something. Let's get on with it, at least a news release on what we can expect.