RE:RE:RE:RE:RE:RE:RE:Why the gold price will continue to rise
Krammer, maybe 'controls' is a bit stong.
There is definitely the leverage of cost and delay in losing their permission to tunnel through Treaty Creek. Seabridge will howl 'permission already granted' and the Three Amigoes and the Province will likely say, 'you didn't provide us with accurate information'. So at their very best, a long and expensive lawsuit results. The probability of injunctions being granted both ways (against Treaty Creek digging into the proposed route, and against tunnelling onto Three Amigoes claims) is high. With appeals, delay, it could block KSM for years and cost many millions.
So what is most interesting is the cost and feasability of diverting the tunnel route, probably North. That must be the greatest extent of the monetary leverage - and it cries out for consolidation of the access plans, if not consolidation of the properties. Is it possible? I don't know.
KSM is way far advanced in terms of proving-up of the deposits, feasability and economic analysis. They must be choked by the delay in having to wait now to see TUD drilling. And Walter has taken the right approacvh in speeding up the program, more rigs, more holes, so there can be no accusations of dawdling for advantage. The problem was created by geography and the happenstance timing of when the two properties were drilled.
But TUD is definitely in a position to negotiate from strength being closer to the highway. Hopefully level heads and cooperation prevail and a mega-project is created that catches this wave of global financial rebalancing that is driving the gold chart.
On that score it looks like we are very early in a major repricing of gold assets, absolutely blown up by the growing possibility of a long stagflation environment. But we are one vaccine announcmeent away from seeing a panic reversal as well, maybe. No trade can get one-sided forever?
Sure looks like there is a heck of a lot of meat on the Treaty Creek bone for a long while to come right now.
CG