RE:Head ScratcherBolvana
I'm very busy today and this is a very complicated story. Ultimately the value of snowfield comes down to capex.... there was originally supposed to be a jointly owned mitchel and snowfield deposit with the ore running through one tunnel. Now the seabridge tunnel and waste tailings dam will all be needed by the ksm deposits...
so pretium has to go to plan b... I've reposted the map of their alterante tunnel route and mill sight proposals previously.... but that would add the cost of about $850 million or so to the cost of building out snowfield...
so in effect the snowfield ore is grounded... because decisions on building out are not based on the current price of gold but a realistic doable price... let's say $1400 an oz...
you don't spend over $4 billion to build out a mine on the basis of pipe dream pricing... stockzorg can explain that to you better because i believe he had a banking career....
so this is what i suspect pretium was looking at when they sold out so cheaply...
now i will go and copy a couple of posts on the pretium board wherein i talked about pretium's new exploration strategy... it ties in with the move on snowfield... beyond that i am very busy at the moment.. it will give you a picture of O'brien's and Perron's new pretium... and it should be explosive ....with a tremendous impact on goldstorm and the pricing of its in situ resource..
the upside of the deal
the first tonnage through the KSM mill will be the 145 million tonnes of near surface and what was it 1.45 grams of gold from the snowfield deposit.
that was the original plan way back when. A joint venture where the snowfield deposits near surface higher grade ore would be run through the mill first. The idea was to gain a rapid paydown on the capex by mining the higher grades first
So in as little as 6 years pretium may be in line for a torrent of NSR money..... Just think as much as 160,000 per day running high grade snowfield material through the mill ... 65 million tonnes per annum at 1.45 grams a per tonne... would mean something like over 2.8 million oz of gold on which pretium would recieve a 1.5% royalty...1.5% on just under $6 billion at todays prices equals an explosive whack of cash.... a money bomb
what a front end load...
you get the idea of the potential... the initial plan to mine snowfield is in the literature ..maybe the analysts can ask the pretium pr department to provide the official documentation of the original plan to mine snowfield's 145 million tonnes of higher grade gold first.