RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Webinar!flashcash wrote: Ivorygull wrote: Ivorygull wrote: Chris did say in the Webinar that we would still have the land parcels such as Deedee to add value to us if/when the Dixie project was taken over from us, adding that was one of their stratagies, getting these other land packages with similar style geology.
I should add that while he did say this, which is excellent news, he more or less threw that out as a consolation for the person who was asking about dividing up the Dixie project to get more value. So while it is good to know that we can look forward in the future to working on those other land packages held by GBR, we do not yet know what they hold, thus I'd rather have more value come out of Dixie by getting the absolute maximum from it.
Seabridge Gold has a massive project and are looking to JV. They want the right partner and want to still own 30% of their project. They have turned down a few offers already and are patiently waiting for the right partner. I'm not sure how they have managed to be able to do this without having a hostile takeover happen to them, but if we could somehow have a similar situation, I'd say that would be our best bet.
But this is so big no one can afford us !
At least i hope so : )
Flashcash, in that case we have reached the Great (Bear) Canuck Conundrum.
How does one sell a DISTRICT SCALE mining property? Or more accurately, how does one sell a DISTRICT SCALE mining property that has gold everywhere?
This is certainly a quandary, and will definitely put Chris and his team between a rock and a hard place in making the best decision to get the most value for the Dixie property.
As you know, normally, a company puts out a resource on what they have found to date and will try to show there is ‘blue sky’ potential on the remaining package. That is how another company will decide on what they want to pay. Sometimes they will pay before the resource even is completed.
In the Webinar, Chris did not seem to be in the mood to entertain ‘armchair quarterbacks or backseat drivers’ such as I’m doing now. He is definitely focused on getting the resource for the 5km done and in no way, at least at this time, does he want to do the same for the other 6km that has gold in it, which he quite readily states. However both he and Bob also said that there are other targets that they will be drilling and that they will be drilling at depth, so that is good to know. There was mention of what the spacing needs to be to get the best resource, and that they are trying to do it with the least amount possible. It seems as long as they can show that they can predict there is gold and it is continuous, they can have less spacing between drill holes.
All of this shows that they are doing what is normal. What we should expect to be done. And they are doing a fantastic job. But it is this normal that is the dilemma.
In the Webinar, Chris asks the question to Bob (which he answers himself anyway) ‘how many companies are trying to produce a resource on the scale that we are doing’ and he answers there are none that he knows of doing this. He knows this would take years to get a resource on all of it.
It appeared to me, and of course this is just my opinion, that Chris while he knows the sheer size and scope of all of this, has no choice but to go the normal way. To sell it as if it were the one normal find. It certainly sounded that way when he alluded to the fact that we’d still have the other properties to work on after the sale of Dixie, and never entertained the thought of selling it otherwise.
So here lies the conundrum.
Would selling it the normal way, reduce the overall value of something that is so big, that no one can afford its true value and so we settle for less?
Should it even be sold the ‘normal’ way?
Could it not be the un-normal which it is, as in there is likely the equivalent of three plus mines in this package, so we sell as if it were more than just the normal one? Does it not make sense to think in ‘district scale’ rather than normally?
Apparently there is more than one way to skin a cat (no animals were harmed at the time of this writing), or that’s what I’ve heard anyway. So if it’s so big, that no one company can afford it, and we are going to sell it off as one and not divide it up, then we have to accept a bid from a consortium of players, that will give us the top price over that of one player giving us their best price, or, that we have a joint venture and still own a decent percentage of the property such as 25-30%, either with a consortium or an individual company.