Why is Rainy River being discounted in the share price.Full disclosure. I am a shareholder and I want RR to be a huge success.
i have contacted Julie in IR. She gives the company line. Results as expected. That's very vague and not much of an endorsement. Why is the company being so illusive as to what's going on at the mine. What does Desjardin know that would prompt them to downgrade this week? It's certainly hurting the share price. Should the company have done a little more to assuage the investment community who have in the past given this project the thumbs down. Eg Jan 2017 NGD needs to give them solid data to get them onside. What have they provided since the mine started processing ore in Oct. Nothing. Please,, give us a crumb.
A geologist very close to me was asked about 10 or 12 years ago to evaluate the RR deposit. He worked for a large international gold miner who was looking to add to their reserves. He looked at the geology and determined that the grade was too low to make it economical. He told me the deposit was made up of fine grains and also dispersed nuggets. The only way to make it economical was that they would have to find enough nuggets within the ore that they processed and they can't predict if they will find enough. If not the grades are too low to make the mine profitable given the billion$ plus cost. He said they could high grade to provide better results in the initial stages until they can work out all of the start up bugs.
BTW I am not a trained geologist.