GREY:SVVYF - Post by User
Post by
wilwalon Jan 14, 2017 3:35pm
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Post# 25708635
The big picture......
The big picture............is coming clear.
By itself, SCA's property has decent potential for a standalone mine but not without a huge amount of drilling to not only increase the ounces, but to get them into reserves and mine-ready. Even then, there is a risk at this point it will be too small by itself.
However, looking at the bigger picture, SCA shareholders may be rewarded long before they get diluted to death with drilling costs.
Consider some of these facts:
1. Acacia has 2700sq km in the vicinity, and its best prospect is in its JV with Sarama that is contiguous with Karankasso, about 2 million oz there, and it is Sarama that has the JV with SCA on Karankasso.
2. Acacia is putting up US$9 million in exploration around there in 2017 to be mostly completed by July mainly with Sarama but also with their other JV's there and have over 40 drill targets. Obviously they are serious about developing Hounde.
3. Acacia is discussing merger with Endeavour who has a mine under construction 80km to the north.
4. Now it gets interesting. Don Dudek, CEO of SCA, is a former senior VP at Endeavour.
5. Endeavor is a significant shareholder of SCA and Don is no doubt communicating with them frequently.
So what is this likely to mean?
1. Both Acacia and Endeavour are intimately familiar with South Hounde and are envisioning a huge potential there for a new large mining operation.
2. Savary and Sarama properties will both get a new 43-101 in Q4 and the total ounces could rise to between 4 and 5 million.
3. When 2017 drilling in South and Central Hounde clarifies some of the potential, there will be strong interest by an Acacia/Endeavour combo to consolidate properties in preparation for mine development. That would make the Sarama JV, the Savary/Sarama JV and Sarama's Bondi permit all very attractive to Acacia/Endeavour to consolidate and acquire. The cheapest time to buy is when the ounces are still Inferred, as we saw in the recent MXI takeover by IAMGold.
So I am thinking consolidation to occur as early as Q4/17. If it doesn't happen then, it won't likely happen until Q4/18 after another drilling season is concluded.