RE:Interview with Paul Huet by InsidexplorationHello Mike,
My comments on ceo.ca. Post here for info for those interested. Keep up with the good work.
@Mikeymike426...Very nice interview with Paul Huet, who is quite open with his thorough explanation. I noticed the cut-off at the end on BH, but there is not much to talk about that, since the strategy is clear: Leave BH with a nice RE, without depending on coarse gold,since the gold there will not go anywhere. Besides, it's a UG operation which is more tricky to handle in a Covid situation (noticed Paul's remark about 50% of the miners are revising (downward) their guidance, while RNC is having the problem (?) of having too much ore in front of the mill (note that they managed to get some ore from BH from below ground to the stockpile in Q1?). At any rate, Paul Huet is sending a signal to MMX that they should be willing to reduce the royalty from 6+1.5% to something more reasonable, or BH would take the back seat (in favour of Spargos which is open pitable @ high-grade, something like 4%). It's kind of interesting that Spargos is situated just a short distance from BH, hence it's no big deal for RNC to move most equipment and work force across. It would seem that ore transportation down that Experance Highway to HGO Mill is a lot more convenient than via some the roads from BH. Some other take-away points: (a) proposed share consolidation: Management and BoD are listening to shareholders, when will they send out the Info Circular for the Special Meeting in June (not much time left)? (b) Phase 1, identified 5 targets, The first one, Fairway North, has actually started with its mining. The 5km structure will likely be drilled under expanded budget (>$10M drill program). (c) paleochannels are the wild cards, look promising, but drilling would provide more data for making decision (high grades could be sent downstream of the crusher which is a bottle neck for the mill). (d) Baloo could become a UG mining operation. Question: Why not just extend the pit wider and DEEPER, unless it would be cheaper to dig up a ramp at the bottom of the pit for the "UG" operation, noting that the pits around HGO are quite shallow, e.g. Baloo pit is now at about 60m (extendable to 100m as shown in Figure 2 of the 19 May 2020 NR). They could easily extend it down to 400m, if drilling indicate a decent deposit at depth). Again, excellent interview!
GH11
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Mikeymike426 wrote: