A Few thoughtsI rarely post on this BB, but have been a Long-Time FT shareholder.
Reviewing the latest comments regarding the quality of mgmt., and why is project has not proceeded quicker got me thinking a little more on the project.
In my opinion a larger gold company has not come forward because this is not a significant gold discovery. Sure, 1mm ounces is decent, but not enough to justify the expenditures required to mine. What supports this comment? The resource numbers have been out there for a number of years, but yet no takers.
The Cobalt is the kicker, what does a gold company do with the Cobalt. It is not like copper, zinc etc. which is easily marketable. The cost of a Cobalt Refinery is a major issue.
I believe the company needs to try to expand the resources to attract a larger company. In a News Release last year, the company talked about a copper outcrop about 2km from the main Cobalt/Gold mining area. What is going on with this, it should be checked out.
Again, the deposit needs to be larger.
Second is what happens with the Cobalt. The company wants an Integrated Operation. This means a Refinery. There are a number in Canada with Sherritt in Edmonton and Vale in Sudbury as the best alternatives. FCC just announced a major expansion of their pilot plant and this is interesting. The company basically said in a recent news release that a Brownfield site is more likely then a new Greenfield site. This makes sense. If this occurs the cost of the facility should be about half of a new Refinery. Huge savings.
So, if a Refinery deal can be made, this addresses the Cobalt, and removes the concern about handling the Cobalt. If additional exploration finds more copper and gold, that makes it more attractive for a larger gold company to set in.
One can argue about the quality of the management and what they should have done. It should be remembered that only 1 or 2 small cap miners make the grade and result in the project. Believe this one will as well, just needs some more work.
Do not believe the company can go it alone, it needs a miner to jump in to be the operator of the project.
Just my thoughts