Yes or No There is alot of opinion on this site weather this is a good or bad deal. I have been working on resource based projects over the past 30 years both from Technical and Management positions.
On all the projects I have worked on there have been 4 or 5 basic steps that have happened before any of the projects have been sanctioned by the companies or share holders. They are:
- Technical accessment that the projects are viable
- Economic analysis to show that the projects are going to have a reasonable rate of return
- A timeline for project implementation including milestones that management have to be accountable for
- Methodology of how the project is to be executed
- Outline of project objectives (ie. How much open pit verses underground, production rates, shipping logistics, ....)
I have read through the ANX March presentation, The ANX Orex Transaction prersentation and the OX news release on April 3. Here are some direct quotes from what I have read:
ANX Corporate Presentation / ANX Orex Transaction prersentation
- POTENTIAL to mine from multiple sources
- Bringing next gold mine into production (Goldboro), ASSUMING positive results of further technical study
- POTENTIAL for substantial capital cost reductions at Goldboro if can use Pine Cove Mill
- POTENTIALLY extend longevity of Anaconda and increase annual production to much higher levels
- POTENTIAL for corporate and operating synergies
OX news release on April 3
A two-phase work program is required to do the following:
- A detailed planning study
- Additional infill core drilling
- A bulk sampling and metallurgical processing program should be carried out to provide assessment of gold grade systematics and processing parameter
- an updated mineral resource estimate and a new Preliminary Economic Assessment study should be prepared
The most concerning statment in OX news release is that "Commitment to Phase 2 would require substantively positive results being returned from Phase 1"
I would like to believe that this is a good thing for both ANX and OX but I really feel it is much too early and rushed to sign this deal off with so many unanswered questions. It would be better if they signed an agreement stating that in 6 months or a year they would proceed if all the due diligence proved that the project is technically and economicly feasable. If so both ANX and OX shareholders would benifit greatly. If it is not technically and economicly feasable, then rushing into this deal next month will sink both companies.
We are all desperate after so many years for both companies to be successful. Please don't vote with your dreams on this deal. Vote on the facts which we are totally lacking right now. Contact ANX and OX and push for more info.